Root Cause Analysis – IA

[Alkit Jain]

The most important point of your audit observation is root cause analysis a.k.a. RCA. Your recommendations as well auditee comments will be based on the RCA only and finally management actionable will be also based on your RCA only.

Let us understand this with an example. Suppose while doing audit, you find that there are some wrong deductions of TDS in a few instances. There could be multiple reasons leading to this scenario:

1. The whole process is automated and system erroneously deducted wrong TDS
2. process is completely manual and wrong deduction is due to human induced error.
3. Process is automated but somebody has changed the masters with or without authorisation or some manual intervention is there in an automated process.
4. Certificates for lower deductions are not updated in system
5. And many more …

So, there could be multiple reasons and you have to be accurate with your RCA and suggest recommendations to ensure that the same gap will not be repeated in future.

Discussion