The key to successful business operations

Although the term 'audit' sometimes carries a negative connotation, a well-conducted internal audit is in fact a powerful tool for positive change and growth. Normanist Jeroen Crepeele takes you through the added value of internal audits in this article.

A brief introduction

How did you end up in the world of quality systems and audits in the animal feed sector?

Jeroen: "I actually ended up in the animal feed sector rather by chance. After my studies, I started working as a quality manager at Voeders Dumoulin, even though I had actually applied for a sales representative position. As quality manager, I got to know the entire compound feed production process, including the Feed Chain Alliance quality system. This system is applied within the animal feed sector, where an announced audit is carried out annually by an independent certification body, and an additional unannounced audit takes place every 3 years."

Did your role also include internal audits?

Jeroen: "Yes. I carried out internal audits within the company, specifically in departments where I did not perform tasks directly myself, so that independence was guaranteed. Those audits were very enriching. During the external audits, I first became acquainted with the job of an external auditor, which sparked my interest. After 9 years at Voeders Dumoulin, I decided to make the move to the role of external auditor in the feed sector at SGS."

External audit vs. internal audit

What are, in your view, the biggest differences between an external and an internal audit?

Jeroen: "The biggest differences lie in the capacity of the person carrying out the audit and the knowledge the auditor has of internal company processes.

In an external audit, the audit is carried out by an external, independent party with limited prior knowledge of the internal procedures of the audited company. In this case, they will start from the standard and audit the processes on that basis. The auditor does, however, have a point of comparison with other companies in the sector. As a result, the auditor may be able to exert more influence in raising issues.

An internal audit, on the other hand, is based more on internal processes, since the auditor has a better understanding of certain sensitivities. In other words, you see the actual reality, nothing will be presented in a more favourable light. Ultimately, an internal audit is more advisory in nature, allowing you to try to resolve non-conformities."

H2 Added value?

What does your experience tell you about the added value of an internal audit?

Jeroen: "Aside from the fact that an internal audit is mandatory in most cases, in my opinion it can also genuinely add value. For example, it can bring problems to light and prevent them from only surfacing during an external audit. In addition, you can carry out an audit several times a year, which can have a positive effect on the process of continuous improvement within a company. After every internal audit, there is a clear picture of the positive aspects and the non-conformities identified.

Of course, there are also cases where an internal audit offers less added value. For example, some companies carry out an internal audit purely to tick the box on this requirement. In these companies, you will also tend to see more non-conformities during the annual external audit."

As an external auditor, you also reviewed internal audit reports. What did you learn from that?

Jeroen: "In certain cases, I find internal audits insufficiently critical, which can be the result of a number of factors. To begin with, it can happen that the person appointed as internal auditor is not always fully independent and is therefore too close to the processes being audited. It also happens that an internal auditor is not sufficiently critical towards colleagues. The use of pre-printed questionnaires also affects how thorough an audit is.

At the same time, I did find that internal audits carried out by consultants were better. I often noticed a stronger knowledge of standards and processes in these cases. Consultants are also able to make comparisons with other companies and independence is better guaranteed."

Internal audits by Normanists

In your view, what are the characteristics of a good internal auditor?

Jeroen: "An internal auditor first and foremost needs a great deal of competence. You need experience with the processes, standards and legislation being audited. Certain soft skills are also required, such as being confidential and acting with integrity. It is important, as an auditor, to always ask open questions and probe for evidence, for example through records. Furthermore, an audit should never become personal, the errors in the system need to be brought to light, not the personal issues at play.

I also want to teach these principles to new colleagues in the future. This way, we can offer our clients high-quality internal audits."

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