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by Greg Hutchins Leave a Comment

Value Added Auditing ™ = Analytical Auditing

Value Added Auditing ™ = Analytical Auditing

Quality, system, and internal auditing are focusing on risk management, process control, process capability, and organizational effectiveness. These value added audits require more information to be collected and analyzed to evaluate value, risk, waste, effectiveness, and efficiency. As an organization moves toward value added auditing, the auditor or audit team will collect more information, conduct in-depth analysis, and obtain sufficient evidence in order to reach conclusions.

What does this mean? Value added auditing for effectiveness, risk and efficiency requires more analysis. This may mean:

  • Flowcharting critical processes.
  • Identifying critical process variables.
  • Deciphering critical process variation.
  • Uncovering unexpected gaps between business objectives and process metrics.
  • Discovering gaps or white spaces that can result in higher risks.
  • Discovering potential risks and errors.
  • Uncovering the absence or differences from what is expected.
  • Identifying chronic or systemic issues.
  • Uncovering fraud or illegal acts.

The challenge is that clause by clause auditor require more knowledge, skills, and abilities.

Filed Under: Articles, CERM® Risk Insights, on Risk & Safety Tagged With: audit, value added auditing

About Greg Hutchins

Greg Hutchins PE CERM is the evangelist of Future of Quality: Risk®. He has been involved in quality since 1985 when he set up the first quality program in North America based on Mil Q 9858 for the natural gas industry. Mil Q became ISO 9001 in 1987

He is the author of more than 30 books. ISO 31000: ERM is the best-selling and highest-rated ISO risk book on Amazon (4.8 stars). Value Added Auditing (4th edition) is the first ISO risk-based auditing book.

« The Difference Between Risk Management and Enterprise Risk Management
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CERM® Risk Insights series Article by Greg Hutchins, Editor and noted guest authors

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