Audit Report – Customer Property 7.5.4 & 8.2.4 (related to applicable incoming inspections or tests)

© 2003 – 2009 Practical Perspectives

Scope: Dealing with customer property
Date: / Auditor(s): / Witness(es):
SECTION /

THINGS TO BE OBSERVED/QUESTIONS TO BE ASKED

(The best place to be when going through this list is out where the customer property is used.) /  /  /

COMMENTS

(as needed)
2-1 / How is customer property identified (labeled, marked, placed in designated areas, etc.) to ensure it can be differentiated from property owned by the organization? 7.5.4
2-2 / How is customer property verified (compared to bill of lading/packing list, inspected, tested, etc.), at a minimum, ensuring this property is not lost, damaged, or unsuitable for use? 7.5.4 & 8.2.4 (related to the incoming inspection aspect of Monitoring and Measuring of Product)
2-3 / What record is maintained to show acceptance to criteria and the name of theperson authorized to release the property for use once the customer property is verified? 7.5.4 & 8.2.4 (related to the incoming inspection aspect of Monitoring and Measuring of Product)
2-4 / Show me evidence of methods used to protect customer property. 7.5.4
2-5 / Show me evidence of methods used to safeguard customer property. 7.5.4
SECTION /

THINGS TO BE OBSERVED/QUESTIONS TO BE ASKED

(When possible, look at 3 or more records showing how lost, damaged, or unsuitable customer property is reported to the customer, with records maintained.)

/  /  /

COMMENTS

(as needed)
3-1 / Records of incidents where customer property was lost, damaged, or unsuitable for use (came in that way or as a result of something the organization did) exist. 7.5.4
3-2 / Records of incidents where customer property was lost, damaged, or unsuitable for use (came in that way or as a result of something the organization did) show the incident was reported to the customer. 7.5.4
Clarifications: / Customer property – Materials, products, equipment, and/or possibly intellectual property (depending upon the degree of control exercised at document control) provided by the customer that continues to be owned by the customer. (Note: If the organization buys the item from the customer, ownership has changed and the item is no longer customer property) Protectvs. safeguard – Webster’s says they are both intended to shield from loss or damage. We will differentiate them as short term (protect) and long term (safeguard) solely on the basis of safeguard including the word “guard.” In essence, protection is the initial action taken to deal with the receipt of customer property (place the item in designated storage areas using appropriate handling and storage methods, set-up of equipment in an appropriate environment, etc.). Safeguarding is the act of putting systems in place to ensure the organization can sustain protection (maintenance of storage areas, maintenance of equipment, maintaining confidentiality of intellectual property, etc.). Damaged vs. unsuitable – Damaged means the item cannot be used because it will not work (i.e., a shaft that is bent and cannot be straightened). Unsuitable means the item could be used, but is not satisfactory (appropriate) for the application (i.e., a shaft with rust is not suitable as the rust does not meet cosmetic requirements or could flake and affect other moving parts).

Add-on questions identified as part of document review (section 1) can be attached to this form or added on the back, as long as the questions include conclusions ().

Audit Report - Customer PropertyRevision: 1/12/2009Page 1 of 1