Audit Observer Training

Revised: 19-Jul-2017
 Audit Observers
Subscriber representatives are encouraged to observe Nadcap audits.
This is an important aspect of Subscriber’s demonstrating oversight of
the Nadcap program.
The purpose of the observation audit is to monitor auditor performance
and the overall effectiveness of Nadcap audits.
The observation is not to be used to simultaneously assess the Auditee
or their processes per Subscriber specific requirements.

OP 1118 defines who is eligible to observe an audit and the process to

be followed when scheduling the observation of a Nadcap audit, PRI's
accommodations for the Observer, and the appropriate conduct of the
Observer.
 Scheduling
The request to observe an audit is done through eAuditNet
• Determine the audit you would like to observe. You can use Audit
Manager to search scheduled audits as shown on the following slides.
• Ensure you are registered as an approved ‘Company Contact’ in eAN
for your company
• On the main audit details page click on the Request Observation
button
• Acknowledge that you will adhere to the Observer rules of conduct
and other Observation audit provisions
If the audit you wish to observe is scheduled to start within 14 days of
your request, the request cannot be made in eAN. Please send your
request via email to PRI Scheduling. This will allow PRI time to follow-up
with the Supplier to ensure they are willing to accept you as an Observer.
Audit Manager

• Select a Commodity
• Select Scheduled audit
status
• Enter a Date Range
• Search Audits
 Search Results

Large lists can be Be sure to consider ITAR/EAR

downloaded into Excel status if you are not a U.S. citizen
or permanent resident
 AQS Audits
If your are planning to observe an audit that is linked to an AQS audit,
please consider observing the AQS audit as well, if time permits.
 Observer Preparation
• Review and be familiar with the following documents:
– OP 1118 Audit Observers
– OP 1105 Conducting an Audit
– Nadcap checklists within the planned audit scope
– General Auditor Handbook (eAuditNet-Resources-Documents-Public
Documents-Auditor Documents)
– Commodity Audit Handbook, when available, for the planned audit scope
(eAuditNet-Resources-Documents-Public Documents-Commodity Folders)
• Determine the Export Control status of the audit and understand your
responsibilities under U.S. export control regulations
• Determine if the Auditee requires personal protective equipment like
safety shoes
• Notify the applicable Task Group if your observation is not being done
as part of the Task Group’s auditor consistency observation plan
• Contact the Auditor for the planned start time of the audit
 Auditee Acceptance
• The selected Auditee may refuse your request to
observe their Nadcap audit. Note: Their refusal must be
consistent with the contractual right of entry requirements of
your company.
• The Auditee must notify PRI Scheduling in writing (e.g.
email) of their refusal, including justification, no later than
fourteen (14) calendar days after notification; otherwise
the audit observation shall be treated as approved.
• PRI Scheduling will contact you if the Auditee refuses
your observation request. You may appeal the refusal by
directly contacting the Auditee.
 Observer Conduct
The Observer shall not interfere with the audit - the Auditor is solely responsible
for conducting the audit per Nadcap requirements.
– Do not influence the selection of job audits
– Remain with the Auditor
– Refrain from discussing the audit process or results with the Auditor while the audit
is being conducted
– See OP 1118 for problem resolution protocols

Observers shall not provide interpretations of compliance to Nadcap requirements

during the audit.
– The observer does not have the authority to speak for the entire Task Group and
should politely refuse if a request is made by the Auditor or Auditee.
– It is acceptable for the Observer to provide clarification of the observer’s own
Subscriber requirements. As much as possible this should be done in the presence
of the Auditee.
 Proprietary Information
During the Observation, it may be necessary for the Auditee to disclose
information which could include, in whole or in part, information concerning
confidential or proprietary information belonging to Subscribers, PRI or the Auditee
or relating to the Auditee’s business affairs including the confidential information of
contractors with whom the Auditee is working or who are soliciting business.

• The Observer acknowledges that it is essential for the proper and successful
functioning of the observation audit process that the information obtained
through participation in the observation audit be used only in the context of
providing process improvement feedback to the Nadcap program through the
Observer Feedback form
• The Observer agrees that they will not use such Proprietary Information within
their company except in connection with its transactions with the party
disclosing such Proprietary Information, and that they will not disclose such
information to third parties and/or representatives from any unit, division, or
location of subscriber organization not referenced in their Subscriber
agreement.
 Observer Feedback
• Feedback must be provided by every Observer
• Observer feedback is completed in eAuditNet. A link to the form
called Observer Feedback – Your Name is located on the main audit
details page
• If more than one auditor is conducting the audit, complete a paper
form for the second auditor and email it to the commodity Staff
Engineer. Copies of t-frm-01 Observer Feedback Form are located on eAuditNet
• Instructions are provided on the form to assist in its completion
• It is recommended that the form be completed within 14 calendar
days of the last day of the audit
• Do not wait too long to complete the form. eAuditNet will not allow
the electronic form to be completed 60 days after the audit was
submitted, and you’ll need to submit a paper form via email
• Observers are requested to discuss feedback with the auditor after
the audit closeout meeting
Your help is needed to ensure the accuracy of
Observation feedback data…
The Task Groups and NMC regularly review Observer feedback. To
ensure Observation data is accurate, please be mindful of the following:
• If you are scheduled on an audit and are not able to attend, please remove
yourself from the audit in eAN or contact PRI scheduling and let them know
you did not attend.
• All feedback questions must be answered in order for the form to be marked
completed. Please answer all questions and ensure (Completed) is identified
next to the Observer Feedback link on the audit details page
• If there is more than one Observer on an audit, each Observer must
complete their own form. Otherwise the data will show you attended, but did
not complete the feedback form. Also, the Task Groups do value each
Observer’s unique perspective.
• If your are observing an audit that is linked to an AQS audit, do not forget to
complete a separate Observation form on the AQS audit.