horror stories in audit part 6

Location Calicut

Large Dairy. The auditor raised a query that the FSMS risk rating system should be mathematically modeled and the decision whether the food safety risk was significant or not should be taken based on a risk priority number (RPN).

        However the same hazard assessment had been cleared by their own audit team member for another location (unit of the same parent company) in the group.

        I checked the model he had suggested as a template. Even for the “yes or no” questions in the hazard assessment, you have to assign marks 1,5,10 depending on the assessment, multiply all numbers together and then arrive at an “RPN”.

         It was “pure mathematical magic” What is the purpose? The Lead Tutor from the same organisation, who taught us, had asked us to keep the rating model simple. The auditor can suggest anything and go away. The Food Safety team will then have to pointlessly waste their time (in calculations-like probability of earthquake or rains- for which super computers have to be used for).

         I believe the management systems are for “better practices” to be in built and control risks, not to make brilliant mathematics to impress and confuse.

Whither auditor consistency

Horror Stories in Auditing 5

Horror Stories in Auditing

Over the years I have received from many known persons certain horror stories which I would like to share here.

5. Location Trivandrum

Auditor team from the leading Certification body of the pleasure capital of Europe, arrived from Delhi. It was a multiple day audit. The auditors were behaving like headmasters.(Arrogant)

         The auditors had come (mostly retired people) first time to this part of the country. They had heard that good spices will be available in Kerala. They made their list and handed over their demands to their counterpart in the client organisation

        The MR (lady) prepared the list and arranged purchase of separate 4 bundles of spices, intended for each member of the team. The spices (supposed to be complimentary and costing thousands of rupees) 4 bundles were handed over to the auditors. Half the team left on the last day by 11 a.m. They carried with them all the four bundles.

        The M.R was flabbergasted; she had to once again arrange two bundles for the remaining team.

Whither dignity of auditing?

Horror Stories in Auditing 4

Horror Stories in Auditing

Over the years I have received from many known persons certain horror stories which I would like to share here.

4 Location Trivandrum

The European C.B auditor arrived late at night on Sunday by flight from Chennai. The driver who picked him up asked whether he needed dinner. The auditor said he didn’t need dinner. The company had arranged the stay in a transit flat located above their own office (which was in a commercial building).

        On arrival at the transit flat at eleven p.m, the auditor suddenly asked for food. Since no caretaker and cook were posted in transit flat, that could not be arranged.

        Then the auditor retired to his room. He was not satisfied with the arrangement.

        He called the receptionist of the office (lady) at night and told “if you cannot afford 1500/- for a decent room, I would have paid you for it”, the room is uncomfortable”. She called MR (lady) at night and informed about it. But it was too late. The damage was done. The next day the MR said, it was because the auditor saw a cockroach, in the flat.

Whither dignity of auditing?

Horror Stories in Auditing 3

Horror Stories in Auditing

Over the years I have received from many known persons certain horror stories which I would like to share here

3 Location Cochin

A large food exporter was being compelled by all the European buyers to take Food Safety Management System certification. 

The requirement was confirmed. Consultant submitted an offer, the offer was accepted and the FSMS work commenced.

        Shortly after that, the MD decided that they would go for a more tough certification Standard for Food Safety, required by the Europeans.

        The certification body from the European industrial power house stepped in. They agreed with the MD to do a gap analysis, training, internal audit, manual preparation and also clear the Food safety System certification.(An offer which nobody can refuse in words of “God Father”).

        The MR called Consultant and asked to short close the existing order. Consultant had no choice but to agree. The CB man had said they will bill in a benami name for portion of consulting work they are doing. 

Whither conflict of interest?

Horror Stories in Auditing 2

Horror Stories in Auditing

2. . Location Trivandrum

The European CB’s auditor arrived morning by flight from Chennai. His return ticket was booked by train that evening by the overnight Express. He suddenly came up with the news that his close relative is in ICU and he wanted to return by flight to Chennai. 

The arrangement of one way flight and Air conditioned coach train ticket was part of the contract agreement. The MR had no approval authority for booking the air ticket. Moreover due to peak season, the train ticket itself was booked on TATKAL basis at higher cost.

        The MR was quite sure that the ICU matter was a “cooked up case” and he could see that no phone calls were coming to the auditor from his house/relatives nor the auditor made any calls during the day, though other calls were coming on his mobile (normal ones).

        The MR went to his GM and got special approval and arranged air ticket for the auditor.”Why unnecessarily take risk”, he said. 

The GM said I have seen many officials behaving like him.

 
Whither dignity of auditor ?

Horror Stories in Auditing 1

Horror Stories in Auditing

Over the years I have received from many known persons certain horror stories which I would like to share here.

1.   A small scale producer of agricultural irrigation purpose HDPE pipes. The final certification audit was going on. The auditor was from the leading body from industrial power house of Europe. He demanded a gold coin for his services. 

Apparently the leading certification body does not pay a decent salary to the auditor!!!!!!!

 The MD was familiar with this type of behavior by government body officials (license-permit Raj) and promptly agreed. 

He was quite confident that the company will get certified, but “just in case” anything happens he decided to oblige the auditor. 

He told, “this is part of the expenses I anticipated.

Whither ethics of auditing?