MCQ On Auditing

Explanation
The correct answer is "All of above." This means that all of the mentioned types of quality audits, including product audits, process audits, management (system) audits, and registration (certification) audits, are included.

Explanation
When the auditor is an employee of the organization being audited, the audit is classified as an internal quality audit. This means that the audit is conducted by someone within the organization, rather than by an external party. Internal audits are typically performed to assess the effectiveness and efficiency of internal controls, identify areas for improvement, and ensure compliance with internal policies and procedures. They provide valuable insights and recommendations for the auditee to enhance their operations and achieve their objectives.

Explanation
A quality system audit is the most comprehensive type of audit as it evaluates the suitability and effectiveness of the system as a whole. This type of audit assesses various aspects such as processes, procedures, documentation, and overall performance to ensure that the system meets the required quality standards. By examining the quality of the system, this audit provides a thorough evaluation of its overall functionality and effectiveness.

Explanation
The correct answer is the client, the auditor, and the auditee. In an audit, the client is the organization being audited, the auditor is the independent professional conducting the audit, and the auditee is the individual or department within the client organization that is being audited. Each of these parties has a specific role and responsibility in the audit process, and their collaboration and cooperation are essential for the success of the audit. The client provides the necessary information and access to the auditor, the auditor conducts the audit and assesses the client's compliance or performance, and the auditee is responsible for addressing any findings or recommendations made by the auditor.

Explanation
An audit is typically conducted in three steps. The first step involves a pre-examination or opening meeting with the auditee to initiate the process. The second step involves a suitability audit of the documented procedures against the selected reference standard. This step ensures that the procedures align with the required standards. The third step involves the auditor examining the implementation of the quality system in detail. This step focuses on how well the quality system is being executed in practice. Therefore, the given statement "An audit is usually conducted in three steps" is true.

Explanation
The characteristics of the audit are not required to be included in the final report. The other options listed are all necessary components of the audit final report.

Explanation
External audits are conducted by independent third-party auditors who are not affiliated with the organization being audited. These auditors charge fees for their services, which can be quite high due to their expertise and the thoroughness of their work. Additionally, external audits require more time as the auditors need to familiarize themselves with the organization's operations and financial records. On the other hand, internal audits are conducted by employees within the organization who are already familiar with its operations, resulting in lower costs and less time required. Therefore, it is true that the time required and costs involved in an external audit are much higher compared to internal audits.

Explanation
Audit is a process that involves comparing actual results with specified standards and plans. This means that during an audit, the objective is to verify whether the outcomes achieved align with the predetermined benchmarks and expectations. By examining the actual results against the specified standards and plans, auditors can identify any discrepancies or deviations that may exist. This comparison allows organizations to assess their performance, identify areas for improvement, and ensure compliance with established guidelines. Therefore, the correct answer is "specified standards and plans."

Explanation
The auditee is expected to provide the resources needed and select staff members to accompany the auditors. The auditee is the entity or organization being audited, and they have the responsibility to cooperate with the auditors and facilitate the audit process. They are also responsible for ensuring that the necessary resources are available for the auditors to conduct their work effectively. Additionally, the auditee may choose to have their own internal auditors accompany the external auditors during the audit process.

Explanation
Quality auditing should not only focus on identifying non-conformances and corrective actions, but also on highlighting areas of good practice within an organization. By acknowledging and promoting areas of good practice, the organization can further improve its overall quality management system and enhance its performance. This approach encourages continuous improvement and recognizes the efforts and achievements of the organization in maintaining high-quality standards. Therefore, the statement that quality auditing should not highlight areas of good practice is false.