WEBVTT 00:00:00.000 --> 00:00:08.400 00:00:08.400 --> 00:00:09.470 Welcome to the online training 00:00:09.470 --> 00:00:11.000 module on audit duration. 00:00:11.640 --> 00:00:13.010 After completing this module, 00:00:13.250 --> 00:00:14.770 you will be able to understand 00:00:14.940 --> 00:00:16.240 how to calculate the minimum 00:00:16.250 --> 00:00:18.030 audit duration and how this should 00:00:18.040 --> 00:00:19.200 be adjusted based on the 00:00:19.200 --> 00:00:20.830 risk identified by the audit team. 00:00:21.720 --> 00:00:22.910 Completing this module should 00:00:22.940 --> 00:00:24.370 also give you a strong base to 00:00:24.410 --> 00:00:25.710 estimate acceptable and 00:00:25.710 --> 00:00:27.390 reasonable duration for your audits. 00:00:28.080 --> 00:00:29.300 The content of this module 00:00:29.320 --> 00:00:30.480 can be further studied in 00:00:30.480 --> 00:00:32.490 section 2.5 of the Auditing Rules. 00:00:34.520 --> 00:00:35.710 As you might know by now, 00:00:35.990 --> 00:00:38.040 section 2.5 of the auditing rules 00:00:38.250 --> 00:00:39.940 outlines an approach to estimate 00:00:39.940 --> 00:00:41.380 the minimum audit duration. 00:00:42.130 --> 00:00:44.140 Rainforest Alliance has experienced 00:00:44.150 --> 00:00:46.300 that different Certification Bodies have 00:00:46.300 --> 00:00:47.930 different procedures and use different 00:00:47.940 --> 00:00:49.990 parameters to estimate the audit duration. 00:00:50.550 --> 00:00:52.880 This frequently confuses certificate holders, 00:00:52.930 --> 00:00:54.930 so sometimes Certification Bodies 00:00:54.930 --> 00:00:56.260 may adjust their parameters 00:00:56.500 --> 00:00:58.160 to make their offer more attractive 00:00:58.160 --> 00:00:59.900 to their potential clients and thus 00:00:59.940 --> 00:01:00.900 winning the contract. 00:01:01.580 --> 00:01:03.420 Rainforest Alliance then saw the need 00:01:03.430 --> 00:01:05.210 to develop a harmonized approach 00:01:05.250 --> 00:01:07.110 and created a formula to facilitate 00:01:07.150 --> 00:01:09.820 a level-playing field for all Certification Bodies 00:01:10.330 --> 00:01:11.780 You can find this formula in a 00:01:11.780 --> 00:01:13.460 template and please remember 00:01:13.490 --> 00:01:15.030 it is mandatory to use the same 00:01:15.030 --> 00:01:16.540 template so that the formula is 00:01:16.540 --> 00:01:17.660 consistently applied. 00:01:18.080 --> 00:01:19.940 However, please note that it will 00:01:19.940 --> 00:01:21.200 become mandatory only 00:01:21.200 --> 00:01:22.940 from the full certification audit. 00:01:23.360 --> 00:01:25.340 Minimum audit duration or MAD 00:01:25.380 --> 00:01:27.390 is calculated using a set of 00:01:27.390 --> 00:01:29.040 key factors that affect the time 00:01:29.050 --> 00:01:30.890 needed for audit activities. 00:01:31.580 --> 00:01:34.140 You may ask if the MAD is fixed or 00:01:34.140 --> 00:01:34.990 if it is flexible. 00:01:35.500 --> 00:01:37.080 That is a crazy good question! 00:01:37.410 --> 00:01:39.330 The MAD indicates the minimum time 00:01:39.360 --> 00:01:40.500 an audit should take. 00:01:40.790 --> 00:01:42.470 When justified, the audit team can 00:01:42.480 --> 00:01:44.220 always increase the audit duration. 00:01:44.450 --> 00:01:47.430 For example, when high risks have been identified, 00:01:47.670 --> 00:01:49.480 normally the audit team is expected 00:01:49.480 --> 00:01:50.830 to extend the time to achieve 00:01:50.840 --> 00:01:52.050 the audit objectives. 00:01:52.690 --> 00:01:54.120 When the sample is expanded, 00:01:54.210 --> 00:01:55.450 the interviews take longer 00:01:55.480 --> 00:01:57.300 as more documents need to be reviewed. 00:01:59.250 --> 00:02:01.210 Now, what about reducing the time? 00:02:01.740 --> 00:02:02.860 Can you do an audit in 00:02:02.860 --> 00:02:04.210 less time than the MAD? 00:02:05.030 --> 00:02:06.990 Yes, but only in few cases which 00:02:07.010 --> 00:02:08.430 will require an exemption from 00:02:08.430 --> 00:02:10.380 Rainforest Alliance before communicating 00:02:10.380 --> 00:02:11.190 it to the auditee. 00:02:11.700 --> 00:02:13.450 Please note that Rainforest Alliance 00:02:13.470 --> 00:02:14.720 may reject the request. 00:02:16.540 --> 00:02:18.040 Now that we have discussed the reasons 00:02:18.040 --> 00:02:19.740 to develop a formula to calculate 00:02:19.770 --> 00:02:21.820 audit duration let’s see how it works! 00:02:22.390 --> 00:02:25.180 MAD is calculated using the following factors: 00:02:25.650 --> 00:02:26.870 Group proximity factor 00:02:27.630 --> 00:02:28.900 This will allow the audit team 00:02:28.900 --> 00:02:30.410 to estimate the time needed for 00:02:30.460 --> 00:02:32.030 traveling between farms in a group. 00:02:32.800 --> 00:02:33.500 Risk factor 00:02:34.070 --> 00:02:36.220 The Certification Body will be required 00:02:36.220 --> 00:02:38.610 to do an audit risk assessment for each audit. 00:02:39.030 --> 00:02:40.620 The outcome of this assessment should 00:02:40.630 --> 00:02:42.390 determine the risk level of the audit. 00:02:42.790 --> 00:02:44.000 The higher the risk level, 00:02:44.070 --> 00:02:46.310 the longer it will take to verify compliance. 00:02:47.130 --> 00:02:48.080 Interview duration 00:02:48.830 --> 00:02:50.880 Interviews are very important to collect and 00:02:50.880 --> 00:02:53.660 triangulate information, especially on social topics. 00:02:54.180 --> 00:02:56.000 This approach considers the time needed 00:02:56.010 --> 00:02:58.210 for individual interviews and group interviews. 00:02:58.870 --> 00:02:59.590 Farm visits 00:03:00.210 --> 00:03:01.450 Based on the minimum and the 00:03:01.460 --> 00:03:02.950 maximum number of farms to be 00:03:02.970 --> 00:03:04.210 visited on an audit day, 00:03:04.550 --> 00:03:06.100 the formula estimates the time 00:03:06.100 --> 00:03:07.090 required for the audit. 00:03:08.050 --> 00:03:08.720 Farm sites 00:03:09.390 --> 00:03:11.150 The audit team will also need time 00:03:11.150 --> 00:03:13.910 for visiting processing units and purchase centers. 00:03:14.640 --> 00:03:16.220 Internal Management System audit 00:03:16.810 --> 00:03:18.590 This should take a fair amount of time 00:03:18.590 --> 00:03:20.790 to properly understand and verify different 00:03:20.790 --> 00:03:23.660 procedures, processes, records, and topics 00:03:23.670 --> 00:03:26.120 such as traceability, shared responsibility, 00:03:26.390 --> 00:03:29.190 capacity building, internal inspection, etc. 00:03:30.490 --> 00:03:32.530 Please note that these are key factors 00:03:32.540 --> 00:03:34.380 that must be included in the formula. 00:03:35.010 --> 00:03:36.910 However, other elements may 00:03:36.930 --> 00:03:38.350 influence the audit duration. 00:03:38.660 --> 00:03:40.500 This is why the Certification Body 00:03:40.500 --> 00:03:42.700 can extend the duration when justified. 00:03:45.580 --> 00:03:47.310 Now that we know the factors at play 00:03:47.330 --> 00:03:48.770 when calculating the duration 00:03:48.770 --> 00:03:50.740 of an audit you might be asking yourself: 00:03:51.120 --> 00:03:52.530 Do we have a minimum audit 00:03:52.600 --> 00:03:54.140 duration for a supply chain audit? 00:03:54.520 --> 00:03:55.250 Yes, we do! 00:03:55.950 --> 00:03:58.150 Please see more details in section 2.5 00:03:58.170 --> 00:03:59.230 of the Auditing Rules. 00:04:01.470 --> 00:04:02.670 The audit duration of a 00:04:02.670 --> 00:04:04.370 supply chain certificate holder 00:04:04.580 --> 00:04:06.360 depends on the number of sites. 00:04:07.180 --> 00:04:09.190 Please note that when a supply chain audit 00:04:09.200 --> 00:04:11.550 has social requirements as part of the audit scope, 00:04:11.980 --> 00:04:14.380 these requirements will influence the audit duration. 00:04:14.860 --> 00:04:16.640 For example, depending on the 00:04:16.640 --> 00:04:18.700 number of workers, the interview duration 00:04:18.710 --> 00:04:20.300 should be adjusted accordingly. 00:04:21.500 --> 00:04:23.050 Does this seem complicated to you? 00:04:23.610 --> 00:04:24.090 Do not worry. 00:04:24.440 --> 00:04:26.660 Rainforest Alliance has set all the factors 00:04:26.690 --> 00:04:28.820 and the formula into a template available 00:04:28.820 --> 00:04:30.340 to all Certification Bodies. 00:04:30.970 --> 00:04:31.740 With the template, 00:04:31.750 --> 00:04:33.700 you do not need to remember the formula. 00:04:33.800 --> 00:04:36.180 You only provide certain data and voila! 00:04:37.060 --> 00:04:38.820 Please use the template all the time 00:04:38.880 --> 00:04:40.220 for each audit you conduct. 00:04:40.600 --> 00:04:42.620 If you have feedback to improve the formula, 00:04:42.950 --> 00:04:46.700 please let us know by writing to cbmonitoring@ra.org 00:04:48.950 --> 00:04:51.020 In this module, we introduced the parameters 00:04:51.020 --> 00:04:53.040 to estimate the minimum audit duration 00:04:53.310 --> 00:04:55.060 and how it can be done using the template 00:04:55.120 --> 00:04:56.710 developed by Rainforest Alliance. 00:04:57.290 --> 00:04:58.850 The details of the formula can be 00:04:58.850 --> 00:05:01.360 found in section 2.5 of the Auditing Rules. 00:05:02.040 --> 00:05:03.660 Please don’t try to remember the formula 00:05:03.700 --> 00:05:04.770 or all the parameters. 00:05:05.480 --> 00:05:07.160 If you consistently use the template 00:05:07.190 --> 00:05:09.390 for estimating the MAD, it will work for you. 00:05:09.960 --> 00:05:11.010 Thank you for watching and 00:05:11.010 --> 00:05:11.650 see you next time!