eAuditing Fundamentals: Virtual Communication and Remote Auditing

By J.P. Russell and Shauna Wilson

The purpose of this book is to provide hands-on guidelines for using electronic communication tools as part of the auditing process.

The pros and cons of conducting e-audits and their consequences will be reviewed. There are situations when e-auditing techniques are more efficient, and other times they may be less efficient and even lead to questionable audit report conclusions. In this book we provide proven techniques for conducting remote audits (eAudits) and explore eAuditing practices to help organizations make informed decisions regarding their use. A ten point eAudit program implementation checklist is included with the book. Combined, the two authors have over 20 years’ experience conducting remote audits and using virtual communication technologies.

• Language: English
• Publisher: ASQ Quality Press
• Release date: Dec 27, 2012
• ISBN: 9781636940847

Book preview

eAuditing Fundamentals

Also available from ASQ Quality Press:

The ASQ Auditing Handbook, Fourth Edition

J.P. Russell, editor

The Process Auditing and Techniques Guide, Second Edition

J.P. Russell

ISO Lesson Guide 2008: Pocket Guide to ISO 9001-2008, Third Edition

Dennis R. Arter and J.P. Russell

Quality Audits for Improved Performance, Third Edition

Dennis R. Arter

The Internal Auditing Pocket Guide: Preparing, Performing, Reporting, and Follow-Up, Second Edition

J.P. Russell

Auditing Beyond Compliance: Using the Portable Universal Quality Lean Audit Model

Janet Bautista Smith

Process Driven Comprehensive Auditing: A New Way to Conduct ISO 9001:2008 Internal Audits, Second Edition

Paul C. Palmes

AS9101D Auditing for Process Performance: Combining Conformance and Effectiveness to Meet Customer Satisfaction

Chad Kymal

To request a complimentary catalog of ASQ Quality Press publications, call 800-248-1946, or visit our Website at http://www.asq.org/quality-press.

eAuditing Fundamentals

Virtual Communication and Remote Auditing

J.P. Russell

Shauna Wilson

ASQ Quality Press

Milwaukee, Wisconsin

American Society for Quality, Quality Press, Milwaukee 53203

© 2013 by J.P. Russell

All rights reserved. Published 2013

Library of Congress Cataloging-in-Publication Data

Russell, J. P. (James P.), 1945-

Eauditing fundamentals : virtual communication and remote auditing / J.P. Russell, Shauna Wilson.

p. cm.

Includes bibliographical references and index.

ISBN 978-0-87389-848-5 (pocket guide, soft cover : alk. paper)

1. Auditing—Data processing. I. Wilson, Shauna, 1959- II. Title.

HF5667.12.R87 2013

657’.45—dc23 2012044336

ISBN: 978-0-87389-848-5

No part of this book may be reproduced in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher.

Publisher: William A. Tony

Acquisitions Editor: Matt T. Meinholz

Project Editor: Paul Daniel O’Mara

Production Administrator: Randall Benson

ASQ Mission: The American Society for Quality advances individual, organizational, and community excellence worldwide through learning, quality improvement, and knowledge exchange.

Attention Bookstores, Wholesalers, Schools, and Corporations: ASQ Quality Press books, video, audio, and software are available at quantity discounts with bulk purchases for business, educational, or instructional use. For information, please contact ASQ Quality Press at 800-248-1946, or write to ASQ Quality Press, P.O. Box 3005, Milwaukee, WI 53201-3005.

To place orders or to request ASQ membership information, call 800-248-1946. Visit our website at http://www.asq.org/quality-press.

List of Figures and Tables

Table 1.1 Virtual workforce.

Table 1.2 What eAuditing is and is not.

Figure 1.1 Potential travel expenses and lost income.

Figure 1.2 Key events leading to global trade.

Figure 1.3 Technological advances since the 1970s.

Figure 1.4 Communications may change or disappear when transitioning to a virtual office.

Figure 2.1 The communication process.

Figure 2.2 The three stages to building trust.

Figure 2.3 Steps in the appreciative inquiry method.

Figure 2.4 Flowchart of sequential questioning format.

Figure 2.5 The two dominant communication methods.

Figure 2.6 Communication media and types.

Figure 3.1 Example of virtual meeting room menu bar.

Table 3.1 Collaborative meeting tools for use in eAuditing.

Figure 3.2 Virtual meeting room opening meeting screen.

Figure 3.3 Virtual opening meeting process.

Figure 3.4 Online meeting sign-in sheet.

Figure 3.5 Virtual meeting software collaborative tools.

Figure 3.6 Changing presentation permissions.

Figure 3.7 eAuditing process.

Figure 3.8 Virtual whiteboard example.

Table 3.2 Pros and cons of using e-mail for record keeping.

Figure 3.9 Internet office portal example.

Table 3.3 Common features and uses of online offices.

Table 3.4 Summary of report issues and concerns.

Figure 4.1 Three components necessary for successful remote viewing.

Table 4.1 Visual tools comparison matrix.

Figure 4.2 Laptop/tablet with inward- and outward-facing cameras.

Figure 4.3 Download times at various internet speeds.

Figure 4.4 Collaborative room layout example.

Figure 4.5 Your sound test meeting checklist.

Figure 4.6 Video whiteboard example from a drying area.

Figure 4.7 Panoramic operational review technique.

Figure 4.8 Side-step operational review technique.

Figure 4.9 Station detail.

Figure 5.1 Remote workforce distribution example.

Table 5.1 Strengths and weaknesses of face-to-face audit model.

Table 5.2 Strengths and weaknesses of eAudits.

Figure 5.2 Hybrid audit model example.

Table 5.3 Strengths and weaknesses of hybrid audit model.

Figure 5.3 eAuditing process model.

Figure 5.4 eAuditing process steps.

Figure A.1 Panoramic operational review technique.

Figure A.2 Process flow view side-step approach.

Figure A.3 Station detail.

Preface

The purpose of this book is to provide hands-on guidelines for using electronic communication tools as part of the auditing process. The pros and cons of conducting e-audits and their consequences will be reviewed. There are situations when e-auditing techniques are more efficient, and other times they may be less efficient and even lead to questionable audit report conclusions. In this book we provide proven techniques for conducting remote audits (eAudits) and explore eAuditing practices to help organizations make informed decisions regarding their use. Combined, the two authors have over 20 years’ experience conducting remote audits and using virtual communication technologies.

Chapter 1: Introduction to the eAuditing Process

Identify environmental driving forces, issues, and important terms related to our virtual world:

• Characterize the virtual environment, telecommuter workforce, and remote auditing

• Review environmental driving forces

• Identify current challenges while working remotely

• Identify fundamental components to be successful

Virtual Organization and the Telecommuter

A virtual organization employs a workforce that conducts business across time zones, geographic borders, and cultures. Another dimension of a virtual organization is that it can include partnerships with other companies, even competitors, for purchasing OEM parts or for contracting business functions like human resources or internal auditing from subject matter experts. Virtual organizations can be ongoing or only temporary. Temporary virtual organizations may disband when the project is