INTERNAL AUDIT FOR RESPONSIBLE BUSINESS ALLIANCE V 8.0 COMPLIANCE

INTRODUCTION FOR INTERNAL AUDIT FOR RESPONSIBLE BUSINESS ALLIANCE V 8.0 COMPLIANCE

The Responsible Business Alliance (RBA), formerly the Electronic Industry Citizenship Coalition (EICC), Code of Conduct establishes standards to ensure that working conditions in the electronics industry or industries in which electronics is a key component and its supply chains are safe, that workers are treated with respect and dignity, and that business operations are environmentally responsible and conducted ethically.

Considered as part of the electronics industry for purposes of this Code are all organizations that may design, market, manufacture, or provide goods and services that are used to produce electronic goods. Compliance to RBA requirements benefits the company with stable and motivated workforce; and potential business opportunities with major Multi-National Corporations (MNC).

This following 2 days modules will cover the RBA V 8.0 Components and its related compliance requirements by examining the elements of RBA. In sequence to that, how do organisations conduct internal audits on the compliance to RBA Code of Conduct by utilising the established Internal Audit and Risk Based Auditing methodology.

This programme will guide participants to understand the RBA components first then to conduct internal audits based on the RBA compliance requirements.

COURSE OBJECTIVES

At the end of the program, participants should be able to;

• Understand the audit criteria required for RBA V 8.0 Compliance
• Understand the Governance and Operations of RBA
• Comprehend RBA framework and Code of Conduct
• Requirement for RBA audits and conformance
• Realize the important of RBA conformance and impact to business

DURATION

• 2 Days

TRAINING METHODOLOGY

• Highly Interactive Session, with a bilateral approach to the subject matter allowing participants to share incidences at respective work locations
• Mind Mapping and Recap Sessions
• Case Studies on various reported Cases
• Ice Breaking / Monotony Breaking Sessions – Purpose of rejuvenating the mind
• Group Activity and Presentation

COURSE CONTENT

• The formation of Responsible Business Alliance (RBA)

• The Framework of RBA Code of Conduct

• Requirements to be a member company

• The RBA Code of Conduct is made up of five sections with 43 key principles:
  • Labor
  • Health and Safety
  • Environmental
  • Ethics
  • Supply Chain Management
  • General Requirements Embedded in Each Pillar
    • Management accountability and responsibility
    • Legal and customer requirements
    • Risk assessment and risk management
    • Improvement objectives
    • Training
    • Communication
    • Worker feedback, participation and grievance
    • Audits and assessments
    • Corrective action process
    • Documentation and records
    • Consequence Management

• RBA audits requirements
  • Validated Audit Process (VAP)
  • VAP Classifications

• Benefit of conformance and Risks for non-conformance
  • Correct Action Plan (CAP) Management

• Compliance Framework
  • Legal
  • Standards
  • Best Practices

• To Manage Assets
  • People (Internal & External)
  • Property (Tangible & Intangible)

• Risk and internal audit overview of RBA elements
  • Definition of risk from RBA perspective
  • Types of risk in an organization in view of RBA elements
  • Functions of management: planning, organizing, implementing and controlling
  • Internal audit as a function of corporate governance to support RBA
  • Scope and building blocks

• Internal audit standards in accordance to RBA
  • Attribute standards
  • Performance standards
  • Risk Based Auditing Standards (ISO 9001:2015; ISO 31000)

• Internal audit implementation: fieldwork guidelines
  • Information gathered by internal auditors
    • 4 qualities of information based on RBA elements
    • Sources and nature of information
    • Assessing the degree of compliance force (Binding / Persuasive)
  • Types of engagement procedures
    • 15 internal audit test tools
    • Observation
    • Interviewing: a disliked technique
      • Interviewing skills: how to run a successful interview
      • Role play: internal auditor in action
    • Examining records of RBA Compliance Components
      • Verification and confirmations
      • ​Vouching and tracing
      • Re-performing
  • Communicating fieldwork results and recommendations
    • Legal considerations for communicating results
    • 4 attributes of an observation or recommendation
    • Disseminating results and exit meetings

• The fieldwork: risk-based auditing
  • Defining management assertions
  • Risk assessment process (ISO 31000)
    • Reason for risk based audit planning
    • Evaluating risks
    • Techniques to identify the auditable units
      • Criteria for selecting auditable units
      • Scoring and weighing risks
    • Prioritizing risk and developing audit plan
    • Methods to generate list of risks
  • Identifying entity level controls to mitigate risks
    • Broad definition for types of controls
    • Essential components of effective internal control system: ‘COSO’ model
    • Criteria for unsatisfactory rating for control components
    • Methods to generate list of controls

• • • • Insights on flowcharting for understanding cycles and controls

• • Testing of internal controls
    • Design and implementation of an internal control
    • Operating effectiveness of an internal control

• • Audit results communication

• • • Executive Summary with severity and explanation
    • Action Plan Priority
    • Presentation Skills
    • Communication Skills
    • Critical Communication