Approved Auditor Manual

Approved auditor manual

A guide for Department of Agriculture and Water Resources approved auditors

Contents

Introduction

Purpose and scope

Approval of approved auditors

Managing the approved auditor

Approval of registered establishments to engage an approved auditor

Managing the audit process

Appendix 1—Contact list

Appendix 2—Approved auditor code of conduct

Appendix 3—Legislation, Australian standards and the department’s guidelines

Department of Agriculture and Water Resources

Approved auditor manual

Introduction

The Department of Agriculture and Water Resources(the department) is the Commonwealth authority responsible for the regulation of prescribed goods prepared for export as food from Australia. This maintains the integrity of the exported product and Australia’s reputation as a reliable exporter.

The department’s role in providing export inspection, audit and certification services helps retain wide access to overseas export markets.

As a result of the service delivery models agreed with the fish, dairy and meat export industries to support export certification reform in 2011, it wasagreed that the audit of registered establishments that prepare fish, eggs, dairy and some meat products for export as food may be undertaken by persons approved by the department to carry out this activity—approved auditors.

To facilitate this, the department implemented the ‘Approved auditor management system’to approve, manage and verify the performance of persons other than department employees to conduct audits of registered establishments on the department’s behalf. The system is based on both legislative requirements and the requirements of the National Food Safety Audit Policy and the National Regulatory Food Safety Auditor Guideline (copies of these documents can be found at and aims to reduce duplication of audits for registered establishments.

Audit of export and domestic requirements

Currently, a number of state regulatory authorities (SRAs) have responsibility for the conduct of audits at registered establishments on the department’s behalf. Conversely, in some jurisdictions the department may conduct audits of export registered establishments for compliance with both export and domestic requirements—these latter audits are conducted on behalf of SRAs.

The department may approve auditors to audit on its behalf in all Commonwealth jurisdictions.

Auditors who also wish to audit domestic requirements must make application to the appropriate food regulator in that jurisdiction for approval.

In order to determine if approval as an auditor is applicable to a specific jurisdiction or a specific commodity (i.e. dairy, eggs, fish and/or meat); reference should be made to the service delivery arrangementsinformation available at:

It should also be noted that for some commodities, an importing country may place restrictions on who can undertake audits. For example, establishments that prepare or store meat for export to the United States of America may only be audited by an auditor employed by the department.

Legislative basis for the approval of auditors

The legislation framework1

The framework for the Australian government to regulate prescribed goods for export as food consists of:

an Act of Parliament: the Export Control Act 1982
subordinate legislation made by the Governor-General: the Export Control (Orders) Regulations 1982, and
subordinate legislation made by the Minister: the Orders—specifically:

the Export Control (Prescribed Goods—General) Order 2005

and the ‘commodity’ Orders:

the Export Control (Eggs and Egg Products) Orders 2005

the Export Control (Fish and Fish Products) Orders 2005

the Export Control (Milk and Milk Products) Orders 2005

the Export Control (Meat and Meat Products) Orders 2005

the Export Control (Poultry Meat and Poultry Meat Products) Orders 2010

the Export Control (Wild Game Meat and Wild Game Meat Products) Orders 2010

The Export Control Act 1982 (the Act) is the overarching legislation controlling the export of food and other goods from Australia. The introduction of the Act provided a stable but flexible legal framework for controlling the export of food and other goods.

The Act came into force on 1 January 1983. It has not been significantly altered since that date, but Orders prescribed under the Act—subordinate legislation—have been amended and new Orders have been established in line with changes in markets and industries, and in accordance with international trade agreements.

The Act, its subordinate Regulations and Orders provide the legal basis for:

Controlling the export of prescribed goods from Australia
Setting conditions and restrictions for the export of prescribed goods
Conditions for registering premises for the preparation of goods for export
Powers for the Secretary and authorised officers to deal with prescribed goods and premises
Offences and maximum penalties for contraventions of the Act.

The export legislative framework, through subordinate legislation—specifically, the commodity Orders—provides the Secretary with the power to approve auditors to conduct audits in accordance with legislative requirements.

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1 Copies of all legislation cited in this document are available at:

Approval of auditors

Schedule 10 of the Export Control (Fish and Fish Products), (Eggs and Egg Products), (Milk and Milk Product) Orders 2005 and Schedule 9 of the Export Control (Meat and Meat Products Orders) 2005, (Poultry Meat and Poultry Meat Products) and the (Wild Game Meat and Wild Game Meat Products) Orders 2010 provide the legislative basis for:

The application and approval process of auditors
Assessment of auditor competence
Decisions to approve (or not approve) auditors
Conditions of auditor approval
Conditions for the revocation of auditor approval
Period of auditor approval
Issuing of identity cards
The maintaining of a register of approved auditors.

The Secretary (or their Delegate) may approve a person as an auditor for the purposes of auditing registered establishments against the requirements of the applicable commodity Orders when the Secretary (or their Delegate) is satisfied that:

the applicant has the necessary knowledge, training, skills and experience to competently carry out audits of the kind for which approval is sought; and
the audits conducted by the applicant will be objective, independent, fair and accurate and, unless stated otherwise in the audit report, will be complete; and
the applicant will comply with the requirements of Division II of Part 6 of the applicable commodity Orders; and
the applicant will comply with documented procedures for the conduct of audits; and
the applicant is a fit and proper person having regard to the matters specified in section 4.05 of the Export Control (Prescribed Goods—General) Order 2005.

Additionally, the Secretary (or their Delegate) may:

take into account any real or perceived conflict of interest that could arise if the applicant was to be approved
request that the applicant provide further documents or information
request that the applicant submit to assessment by interview, audit or written examination, or any combination of those ways
apply conditions to the approval.

Purpose and scope

This manual is provided to inform approved auditors conducting regulatory audits of registered establishments on behalf of the department, of the system that has been implemented to manage the approval process, the approved auditor and the audit process.

Auditors approved under this system, known as approved auditors, may include independent, third party or commercially employed auditors, but due to potential conflicts of interest may not include persons in the direct employ of the department registered establishment subject to the audit.

Definitions

In this document, terms have the following meaning:

Approved auditor: is an auditor approved by the Secretary (or delegate of) under Schedule 10 of the Export Control (Eggs and Egg Products) Orders 2005, Export Control (Fish and Fish Products) Orders 2005, Export Control (Milk and Milk Products) Orders 2005 and/or Schedule 9 of the Export Control (Meat & Meat Products) Orders 2005, Export Control (Poultry Meat and Poultry Meat Products) Orders 2005 or Export Control (Wild Game Meat and Wild Game Meat Products) Orders 2010.

AMS: Audit Management System—the department’s electronic system that manages all aspects of audits.

Approved arrangement (AA): the food safety management system in place at a registered establishment, which is approved by the department for the identification, control, monitoring, review and reporting of food safety hazards and compliance with legislative and importing country requirements.

Registered establishment: Refers to an export registered establishment engaged in the preparation (including storage, handling and loading) of prescribed goods for export.

Occupier: The individual, corporation or other legal entity (or any combination of these) in whose name a registered establishment is registered.

SRA: State Regulatory Authority—the state or territory authority responsible for food safety in that jurisdiction.

Introduction to the approved auditor management system

The department has developed and implemented the approved auditor management system to:

Approve, manage and verify the performance of persons other than the department’s employees —known as approved auditors—who conduct audits of registered establishments on the department’s behalf
Manage the approved auditor
Approve registered establishments to engage the services of an approved auditor
Manage the regulatory audit process.

The responsibility for activity in the regulatory audit process is shared between the department, approved auditors conducting regulatory audits and the registered establishments that require regulatory audits.

The role and responsibility of the department

As part of effectively demonstrating compliance with legislative and National Food Safety Auditor Policy requirements, the department has systems in place to approve, manage and verify the activities of authorised officers and approved auditors, to approve registered establishments to operate under the department’sapproved auditor management system and, where applicable, respond to audit findings and results of verification activities.

Within this system, the department maintains responsibility for any enforcement action that needs to be taken in response to audit outcomes.

The role and responsibilities of approved auditors

The role of the approved auditor is to conduct regulatory audits of a registered establishment’s compliance with:

The applicable requirements of the Act and the commodity Orders.
The requirements of the establishment’s food safety management system, known as an AA including any conditions that may apply.
The applicable importing country requirements identified in the establishment’s AA, for all aspects of the preparation (including storage, handling and loading) of the commodity or commodities for export as food that falls within the scope of the auditor’s conditions of approval and commodity risk classification.

The approved auditor is responsible for ensuring that:

The necessary knowledge, training, skills and experience required to conduct audits are maintained, including the maintenance of any competencies or qualifications specified in the approval criteria.
Audits conducted are objective, independent, fair and accurate and, unless otherwise stated in the audit report, are completed.
Audits are conducted as expeditiously as possible and in a way that causes as little interference as possible to the operations which may be the subject of the audit.
Any additional documented procedures provided by the department in relation to the conduct of audits are complied with.
The approved auditor code of conduct is complied with.
The department is informed immediately of any circumstances that may affect the approved auditor’s approval with regards to criminal activity or real or perceived conflicts of interest.
A current approved auditor identity card can be presented on request.

Failure to competently undertake these responsibilities, which will be verified by the department, may result in revoking auditor approval or requiring the approved auditor to take agreed corrective action which may include, but is not limited to, the undertaking of additional training.

The role and responsibilities of the occupier/registered establishment

The role of the occupier of a registered establishment is to ensure compliance with legislative requirements through the effective implementation and maintenance of their approved arrangement.

The occupier of a registered establishment is responsible for ensuring that:

Department approval to engage an approved auditor is sought.
Their premises and approved arrangement is audited at the frequency outlined in the applicable department guideline.
The approved auditor engaged under the system has the appropriate scope of approval, including the appropriate commodity risk classification, to conduct the regulatory audit.
As per the requirements of the legislation, all necessary assistance is provided to the auditor as is reasonably necessary to enable the auditor to perform the audit of their operations, including, but not limited to:

The provision of information, explanation, documents, translations and demonstrations of use of equipment.

Allowing the auditor to interview their employees, agents or contractors and export permit issuers.

Allowing the observation of their procedures.

Use of their equipment for the purposes of accessing, examining, testing, sampling, recording or reproducing any documents or thing at their premises.

Bringing onto the premises any equipment required to perform the audit.

Any corrective action agreed to be taken to address audit findings is implemented and reviewed for effectiveness within the timeframes specified in the audit report.

The occupier and the approved auditor are responsible for organising and managing the audit process. The department is not involved in any contract negotiations or agreement between the occupier and an approved auditor.

Failure to comply with these requirements may result in a direction being given to the occupier by the department to comply or the revocation of approval to engage an approved auditor. Where approval has been revoked, audits will be conducted by the department.

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2 Order 65 of the Export Control (Fish & Fish Products) Orders 2005, Order 60 of the Export Control (Eggs & Egg Products) and (Milk & Milk Products) Orders 2005 and Order 59 of the Export Control (Meat & Meat Products) Orders 2005, (Poultry Meat & Poultry Meat Products) and (Wild Game Meat & Wild Game Meat Products) Orders 2010

For additional information for registered establishments see: The registered establishment guide to the departmentapproved auditor management system available at:

Approval of approved auditors

Auditors seeking to become an approved auditor must apply to the department and demonstrate that they meet the criteria for approval as described in this section.

Fee

There are currently no fees payable for the initial application or annual renewal of auditor approvals. This is subject to change and it is the responsibility of approved auditors to monitor thedepartment website at updates.

Duration of auditor approvals

The duration of an approved auditor’s approval with the department is 12 months from the date of initial approval, unless revoked. Approved auditors must undergo an annual renewal process to maintain their approved auditor status.

Approval process and criteria for approved auditors

Auditors seeking to become an approved auditor with the department must apply by completing the approved auditor application form available at:

A contact for all enquiries relating to approved auditors is provided at Appendix 1—Contacts.

The approved auditor approval process

The approval process consists of the following sixsteps:

Step 1—Submit application to the department

Applicants will be required to submit a completed application form and supporting documentation that includes:

Personal / contact details.
Consent of the applicant to the publishing of contact details in a public register of approved auditors.
Details of approval to work in Australia if not an Australian citizen (certified copies of valid passport/current working/permanent residency visa if applicable).
Photographs (4) and signature sample.
Nomination of the commodity risk classification/s that the applicant is seeking approval for.
Details of commodity experience (medium and high risk).
Nomination of region/s of operation.
Details of qualifications—Statements of Attainment / technical qualifications (certified copies to be supplied) applicable to the commodity risk classification applied for.
Certified copy of professional indemnity insurance certificate.
Disclosure of any real or perceived conflicts of interest.
Disclosure of any pending criminal charges / denial of approval as a regulatory auditor.
Certified copy of an Australian Federal Police National Police Check.
Certified copies of documents sufficient for a 100 point identification check.
Acknowledgement of having read, understood and agreed to comply with the departmentapproved auditor manual andapproved auditor code of conduct.
A signed declaration to the accuracy of the information provided.

The following section provides additional detail as to the requirements in italics in the above list.

Commodity risk classification

The department uses the risk classification system defined in Table 1—Commodity risk classificationfor commodities and processes to determine:

The qualifications and experience required by approved auditors to effectively conduct audits for some commodities.
The frequency of auditing of the approved arrangements implemented by the registered establishments.

Applicants must indicate both the commodity and risk classification for which they are applying and ensure that they have the appropriate qualifications and commodity experience.

Low risk

Low risk classification is not commodity specific.An auditor applying for approval to audit low risk processes may audit any commodity / process classified as ‘low risk’. Storage includes dry, cool and frozen storage.

Medium risk

Medium risk processes include all processes not specifically noted as low or high and includes processes that result in a product that will be subject to further processing or is intended to be cooked by the consumer prior to consumption. Medium risk classification is not applicable to milk products.

High risk

High risk processes include:

Heat treatment processes where the product is retorted or pasteurised with a nominated refrigerated shelf life and commercially sterile, shelf stable product.
Cook / chill processes where minimally heat processed foods are distributed as chilled products with a defined shelf life.
Ready-to eat-fish, egg, dairy and meat processes not included in the definition of heat treatment or cook/chill that result in a ready to eat product.
Processing of bivalve molluscs where in-shore harvesting is included in the process to be audited.

Note: