What is the importance of an effective Internal Audit Program?

Internal audits stand out as an essential resource for promoting efficiency, transparency and compliance in organizations, becoming a differentiating factor for business success. According to ISO 19011:2018, audits are defined as the “systematic, independent and documented process for obtaining objective evidence and evaluating it objectively, to determine the extent to which audit criteria are met”. In this context, it is important to define the role of the auditor, who must be qualified, since it is he who examines, observes and evaluates the entire process and its management system.

Need for compliance and continuous improvement

Internal audits are crucial for maintaining compliance with regulatory requirements and international standards, such as BRCGS, IFS, FSSC 2200 and SQF. A study by PwC Brazil indicates that 62% of companies that carry out regular internal audits have shown a significant reduction in non-conformities and the associated penalties. Ensuring compliance with the requirements of the applicable norms and standards avoids penalties, legal risks and guarantees the maintenance of international certifications. Identifying opportunities for improvement is crucial to promoting a culture of proactivity in identifying weaknesses, as well as preventing a gap that could become a more serious deviation.

Challenges in the food industry

Food industries have several risks associated with non-conformities and lack of quality control, such as product recalls and loss of consumer confidence. According to the Food Safety and Inspection Service (FSIS), more than 25% of food recalls in the US in 2020 were due to failures in internal quality control. The risk management process evaluates and raises risks that have not yet been managed, redefining actions to mitigate them and verifying the effectiveness of the actions already implemented.

Implementation of internal audits

Internal audit process

Internal audits, also known as first-party audits, are conducted by the organization itself with its own staff or by a hired professional, and are carried out in order to seek evidence of conformity in the management system and compliance with the requirements of the standard.

The certification standards recognized by the GFSI, such as BRCGS Food, IFS Food, FSSC 22000 and SQF, describe the internal audit program as one of their requirements and it must contain, as a minimum:

- A plan (program and/or procedure) that determines the scope and criteria;

- Frequency;

- Competence of the auditors;

- Records (report and action plan);

- Communication of results.

The table below compares the internal audit requirements of the GFSI standards.

Benefits of internal audits

Properly carried out internal audits, with seriousness and support from management, add a series of values to the company. These include:

Compliance assurance: They help to ensure that processes are aligned with the requirements of established standards, avoiding penalties and guaranteeing that certifications are maintained. According to a Harvard Business Review study, companies that carry out regular internal audits are 30% less likely to face regulatory penalties.

Identifying opportunities for improvement: They promote a proactive culture in identifying weaknesses, preventing small deviations from becoming serious problems. Based on this principle, it is possible to re-evaluate processes and understand where there are opportunities to develop an activity better, revise a process or even eliminate a stage, making the work more effective.

Increased operational efficiency: Increases the efficiency of operational processes, reducing rework and reprocessing.

Risk management: Raises and manages risks related to management systems, reassessing those that have not yet been raised, redefining actions to mitigate risks and verifying the effectiveness of actions already implemented.

Improved reputation and credibility: Demonstrates the company's commitment to quality, sustainability and social responsibility, increasing the trust of clients, partners and stakeholders. And internally, it promotes an improvement in the quality and safety culture among employees and the organization.

Continuous improvement and greater competitiveness

Internal auditing is a tool for continuous improvement by checking the Management System, since by identifying non-conformities and dealing with them, the company improves and strengthens its process.

Therefore, internal auditing is indispensable for any company seeking excellence in food production, guaranteeing not only product quality and safety, but also sustainability and competitiveness in the market to ensure a safer and more prosperous future for everyone involved.

Sources:

1. Norma ABNT NBR ISO 19011/2018 - Diretrizes para auditorias de sistemas de gestão.
2. Estudos de caso da Harvard Business Review sobre auditorias internas.
3. Relatório da PwC sobre reputação corporativa e auditorias.
4. Dados da Food Safety and Inspection Service (FSIS) sobre recalls de alimentos.
5. Norma BRCGS Food issue 9
6. Norma IFS Food issue 8
7. Norma ABNT NBR ISO 22000:2018.
8. Norma SQF: Código de Segurança de Alimentos: Fabricação de Alimentos, Ed. 9