Cross culture, cross wires?

The audit process is the same wherever in the world the audit is done but cultural differences, the impact of time differences and concerns about the unknown can put particular stress on both the auditor and the auditee, says head of environmental auditing at Atkins plc, Tony Iles.

Whilst the auditor has the benefit of agreeing with the client on the scope and objectives of the audit (eg full EMS, EMS legal compliance, or possibly pre-acquisition due diligence) there can be a considerable degree of apprehension on the auditee side. This may be the first time that they have been the subject of an audit and they are likely to be worried about ensuring that their company is seen in a good light or even that they may be blamed for doing 'something wrong' or speaking out of turn.

To ensure a smooth audit, therefore, consideration must be given to choosing who should go, careful planning (and communicating the plan with the auditee), and the conduct of the auditor during the site inspection.

What do you need to audit overseas?

In addition to a sound knowledge of the target business sector, successful international auditing requires individuals who are very good with people (and in particular are able to pick-up on the sensitivities of others), are assured, firm and have more than their fair share of common sense. There will always be surprises and the auditor will need to be able to think on their feet.

With the increasing universality of English as a business tool, competence in the local language is not a major stumbling block. However, an awareness of local business etiquette, including the importance of managerial status and ‘face’, is as important as an understanding of the local environmental laws and social standards.  Do your homework; don’t rely on formal country briefings – these often paint a very poor picture – speak to someone who has worked in the country before you go. For example, it is important to know if you will cause great offence by refusing a formal lunch or declining numerous toasts to everyone's success in strong alcohol; similarly, are gifts appropriate, whether given or received by the auditor?

'...be careful if you choose local consultants as interpreters, as you can feel side-lined at times'

Are you prepared?

The preparation of a good audit plan will be second nature to all experienced auditors but for those who are new to auditing overseas it must be stressed that preparation is fundamentally important. Inevitably you will have a very short time on site and, as you are essentially on your own, you must be highly organized to get the most from the site inspection and interviews. Be sure to send a briefing note to a named contact on site as far in advance of your visit as possible; you can append your list of documents you would like to view (or copy) or a more detailed audit questionnaire to this briefing note.

There are a number of on-line guides to local legislation but it is preferable to work jointly with a local consultant. They will provide valuable information on how the law is applied, proposed future changes and can also facilitate discussions with the regulator. However, be careful if you choose to use these individuals as interpreters as you can feel side-lined at times. Asking a question which leads to a five minute conversation interpreted as a 'yes' or 'no' is not very helpful.

Completion of a site risk assessment before you have seen the site is difficult but be clear if you need to take your own safety equipment or if you can borrow personal protective equipment locally.

What’s expected on-site?

Be sure to set the scene properly in the open meeting.  Re-state your objectives and how you would like to work (ask if you can take photographs). You may be an honoured guest but it will be difficult to undertake the site inspection effectively if you are accompanied by a formal entourage. If you are working in a large team then give each member a separate task, one interviewer to one interviewee.

Often one of the hardest issues to discuss is the quality of emissions to the environment. You could be faced with what is clearly a dust laden plume to be told that the last measurement showed the particulate levels to be 20 mg/m3 (bear in mind that in some countries mass emissions are used in preference to concentrations and emission rates). Sometimes measurements are only taken when the plant has been shut down or the abatement equipment just maintained. Be firm but polite in following the audit trail but don’t paint people into an obviously embarrassing corner.

Finally, be aware who the senior individual on-site is and ensure that you treat her/him with the necessary respect. Try to sit opposite them at the opening and closing meetings. Gain their confidence at the start of the audit as you may well need their help or permission in obtaining data.  At the closing meeting summarize your findings clearly and thank the senior individual for their help.

Above all, try to make new friends and enjoy yourself!

How can you add value?

Without being too cynical, the auditor should also consider why she/he has been asked to undertake the audit. Taking into account the probable difference in day rates, travel and accommodation costs, using an overseas auditor can be an order of magnitude more costly than a local consultant. 

If you are being employed by the target company then the most likely answer to this 'why me?' question is to provide an assessment of their company against international benchmarks (eg corporate EMS or CSR standards). The provision of Best Available Techniques (BAT) Assessments is becoming increasingly common as EU BAT Reference (BREF) notes are used widely and in many instances they have replaced World Bank or IFC standards.  

By employing you, they are investing their hard earned cash in your experience and judgment and you must deliver. Your advice, which could be as fundamental as 'is it better to retrofit abatement plant or re-build the manufacturing facility itself' may have a major affect on investment plans for the next twenty years. 

Alternatively, if your client is looking to purchase the target organization then the independence, experience and knowledge of the auditor will be essential and there is an international 'going rate' for such work.

Your client is buying your assessment of the risk and liabilities associated with the target company, advice on the significance of these liabilities and, let’s not be coy, the professional indemnity insurance that goes with it. Due diligence auditors must be experienced enough to identify and call the 'deal breaker' and as a minimum must be knowledgeable enough to briefly list the risks facing the business, understand if they are actual or contingent liabilities and then prepare a clear Environmental Action Plan (EAP) which could be used by site staff to improve performance.

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