Factors Influencing Audit Design
FACTORS INFLUENCING AUDIT DESIGN
The design of an audit may reflect a number of factors:
· The nature of the hazards
· The level of risk
· Regulatory requirements, and
· Previous experience, e.g., audit findings or accident/incident record
One approach to audit design is to look for the most significant hazards. A list of potential problems with their consequences may reveal a range from trivial to serious. Those problems which may have severe consequences, for example, death or serious bodily injury, and may plausibly occur, are the areas that must be addressed by an audit. Previous experience, in the form of accidents or incidents, can be valuable in showing up these problem areas. The experience of other enterprises in the same industry is also relevant. Regulatory requirements are often based on past accident experiences that have been addressed by making laws to control their future occurrence - for example, machinery guarding, so they can also be a valuable guide to audit design.
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IMPORTANT
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| Work out the most significant hazards in terms of risk and likely consequences, and make sure that the audit covers these hazards |