Audits. The word alone can strike fear into a business. Many think of the auditor as the villain in a horror film, lurking in the shadows, ready to come in and hack away. An audit doesn’t have to be scary. In fact, it can yield positive results.
I have been responsible for various aspects of audits acrosscnumerous certified maritime management systems, including IMO-ISM, SPS, TSMS, AWO-RCP, and SMS, as well as the International Organization for Standardization, with specific expertise in safety, quality, environmental, energy, information security, and physical security, among others. Throughout my experience, I have seen one small yet very impactful choice that makes the greatest difference and drives the most value for a business. That choice centers on the internal audit.
In many cases, internal audits are a required step prior to an external audit necessary for management system certification. The cost of an external audit — both financially and operationally — carries greater weight than an internal audit because it is tied directly to certification. A poor external audit will cost a company more than just audit fees; it can impact operations, contracts, trade, labor, and ultimately the business owners’ pockets. However, there is a way to prevent a bad external audit, and it starts with a strong internal audit.
The most successful internal audits provide leadership with an honest assessment of the status of the management system. I have seen businesses traditionally take two approaches. The first is the checkbox approach. The internal audit is completed by someone in-house simply to check the box and meet compliance requirements. This choice may lead to shortsighted cost savings, as the audit results are often limited. The auditor may unknowingly inject personal bias or struggle with conflicts of interest, making it difficult to independently and honestly assess the management system — even though management system standards require auditors not to audit their own work.
The alternative approach uses an independent (outside) auditor to conduct the internal audit. While this option carries a cost, it provides a truly independent set of eyes. Employee engagement tends to be more open, allowing management to better gauge employee and crew opinions on the system’s effectiveness. Ultimately, when management chooses to utilize an independent internal auditor, it positions the business to receive an objective and honest assessment, placing the organization in the best position for continued success. This should be the purpose of any audit.
