Al-Jaber International Company

Procedure
System of CONTROL PROCEDURE FOR AUDITING
1 Revision History
Revision Description of
DATE Initiated By Completed By
No# Changes
09th October Management Integration for ISO Management
01 2018 Representative 14001 and OHSAS Representative
18001, 9001:2015

2 Distribution List
Sr. No/ Designation Issue Date Distributed by
Management Management
01 09th October 2018
Representative Representative
Management
02 CEO 09th October 2018
Representative

03 Management
Chairman 09th October 2018
Representative

Document Issue Revision Original Revision Document Document Document

Number Number Number Issue Date Issue Date Prepared By Reviewed by Approved By

Management
AJB- CPA - CEO Chairman
1.1 01 01-01-16 09-10-18 Representative
PR-01

Copyright
This document contains confidential information. It may be copied in full or in parts only by Al-Jaber
International Company and only for the purpose of Al-Jaber International Company related activities.
Disclosure of any information contained within this procedure to any person (s) outside the employee of Al-
Jaber International Company without written permission of the Top Management is strictly prohibited.

Page 1 of 10
 Al-Jaber International Company
Procedure
System of CONTROL PROCEDURE
FOR AUDITING
Original Issue Date: Revision Issue date:
Doc. No: AJB-CPA-PR-01 Issue Number: 01 Revision Number: 01
01st January 2016 09th October 2018

TABLE OF CONTENTS

1. DEFINITIONS AND ACRONYMS .................................................................................................... 4

1.1 DEFINITIONS ............................................................................................................................................... 4
1.2 ACRONYMS ................................................................................................................................................. 4
2. INTRODUCTION ..................................................................................... Error! Bookmark not defined.
3. PURPOSE ............................................................................................... Error! Bookmark not defined.
4. Audit Objectives .............................................................................................................................. 6
5. PROCESS INPUTS ........................................................................................................................... 6
6. PROCESS OUTPUTS....................................................................................................................... 6
7. PROCEDURE .................................................................................................................................... 6
7.1 Audit Planning ....................................................................................................................................... 6
7.2 Frequency of Audits ............................................................................................................................ 6
7.3 Audit Notification .................................................................................................................................. 7
7.4 Audit Preparation ................................................................................................................................. 7
7.5 Conducting the Audit........................................................................................................................... 7
7.6 Audit Reporting .................................................................................................................................... 8
8. Audit Follow-Up ............................................................................................................................... 9
9. Non-Conformances – Issuance / Closure..................................................................................... 9
10. Trend Analysis ............................................................................................................................... 10

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without the approval of the Management is prohibited. Page 2 of 10
 Al-Jaber International Company
Procedure
System of CONTROL PROCEDURE
FOR AUDITING
Original Issue Date: Revision Issue date:
Doc. No: AJB-CPA-PR-01 Issue Number: 01 Revision Number: 01
01st January 2016 09th October 2018

LIST OF TABLES
Table 1: List of Acronyms.................................................................... Error! Bookmark not defined.
Table 2: List of Definitions .................................................................... Error! Bookmark not defined.

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without the approval of the Management is prohibited. Page 3 of 10
 Al-Jaber International Company
Procedure
System of CONTROL PROCEDURE
FOR AUDITING
Original Issue Date: Revision Issue date:
Doc. No: AJB-CPA-PR-01 Issue Number: 01 Revision Number: 01
01st January 2016 09th October 2018

1. DEFINITIONS AND ACRONYMS

1.1 DEFINITIONS

Term Definition
Systematic, independent and documented process for
Audit obtaining audit evidence and evaluating it objectively to
determine the extent to which audit criteria are fulfilled
Set of Policies, procedures or requirements used as
Audit Criteria
reference
Outcome of an audit provided by the audit team after
Audit Conclusion
consideration of the audit objectives and all audit findings
Records, statements of fact or other information, which are
Audit Evidence
relevant to the audit and verifiable
Results of the evaluation of the collected audit evidence
Audit Findings
against audit criteria
Auditee Department being audited
Auditor Person with the competence to perform an audit
Set of one or more audits planned for a specific time frame
Audit Program
and directed towards a specific purpose
Audit team One or more auditors conducting an audit
Company Mass Group Holding Company & Donaldson Company
WAJDI GROUP W.T.E – AL-JABER INTERNATIONAL
Contractor
COMPANY Joint Venture
Action to eliminate the cause of a detected nonconformity or
Corrective Action
other undesirable situation
Non-Conformance Non-fulfillment of a requirement

1.2 ACRONYMS

Acronym Description
DS Degassing Station
IMS Integrated Management System
ECP Evaporative Cooler Project
NCR Non-Conformance Reports
QMS Quality Management System
QA/QC Quality Assurance / Quality Control
TSC Technical Services Contract
SGPS Suleimanya Gas Power Station

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without the approval of the Management is prohibited. Page 4 of 10
 Al-Jaber International Company
Procedure
System of CONTROL PROCEDURE
FOR AUDITING
Original Issue Date: Revision Issue date:
Doc. No: AJB-CPA-PR-01 Issue Number: 01 Revision Number: 01
01st January 2016 09th October 2018

2. INTRODUCTION

The plant is located in the town of Chamchamal, which is located about 60 Km to the west of
Suleimanya city.

MGH has signed a contract with the Ministry of Electricity in Kurdistan Region to build SGPS with
a Capacity of 1500 MW on basis BOO (Build,Operate and Own). Work Started at site early 2008.
In the first and second phases (simple cycle), eight Frame-9E gas turbines were installed and
operated to produce 1000 MW and the contract for the simple cycle was signed with the
American Company GE and the German Company ABB.

As the Third Phase of the project, MGH started converting SGPS into a Combined Cycle with
additional 500 MWs capacity, by utilizing the gas turbine exhaust heat emissions to produce
steam in Heat Recovery Steam Generators (HRSG), which will used to generate electricity in two
steam turbines. This process increases the production efficiency without using extra fuel. It also
reduces the amount of CO2 emissions and frees the environment from combustion emission.
After the completion of the combined cycle, the plant capacity will be upgraded to 1500 MW.
It is worth mentioning that Sulaymaniyah power station is designed to operate on two types of
fuel, the prime fuel (natural gas) and secondary fuel (diesel).

The main parts of the Combined Cycle are:

- 9E gas turbines manufactured by the American company (GE).
- The steam turbines of the type (C7) manufactured by the American company (GE).
- Boilers(HRSG) of Belgian company (CMI).
- Air cooling systems from the German company (Enexio).
- The main and subsidiary transformers of the French company (Alstom).
- The main control system of the American company (Emerson).
- Gas pressure reduction system from the German company Bilfinger-Rotring.

The substation accompanying the plant is 132 KV for a Simple Cycle and a 400 KV for the
combined cycle, both were supplied by the Swedish company ABB and the power is transferred
from the station site via fourteen high voltage lines connected to the national grid in the
Kurdistan region.

3. PURPOSE

The purpose of this document is to detail the Audit Procedure and frequency of the audits. This
procedure describes the process for auditing the system elements of the Quality Management
System.

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without the approval of the Management is prohibited. Page 5 of 10
 Al-Jaber International Company
Procedure
System of CONTROL PROCEDURE
FOR AUDITING
Original Issue Date: Revision Issue date:
Doc. No: AJB-CPA-PR-01 Issue Number: 01 Revision Number: 01
01st January 2016 09th October 2018

4. Audit Objectives
The following objective shall be met during auditing:
 Audits are conducted by qualified auditors based on experiences and auditor
training. The personnel are independent of those who perform or directly
supervise the activity being audited.
 Confirm the effectiveness of the Quality Management System.
 Confirm the Implementation and continuing suitability of the Quality
Management System.
 Identify areas of improvement within the process and departments.
 Contractor shall include Company, at Company’s discretion, in Contractor’s
audit planning and execution.

5. PROCESS INPUTS
The following process inputs are required for this procedure:
 Audit Schedule
 Company Quality Requirements
 ISO 9001:2015 Quality System Requirements

6. PROCESS OUTPUTS
The following process outputs are generated as a part of this Audit Procedure:
 Documented Audits
 Process Improvements
 Product Improvements
 Identify conformance and/or non-conformance

7. PROCEDURE

7.1 Audit Planning

Audits shall be planned and documented in the Project Quality Audit schedule Doc. No:
AJB-IMS-PR-09
All processes/departments in the project shall be included in the audit program.
The planning of the audit program shall consider the status and importance of the areas to
be audited.

7.2 Frequency of Audits

Each department/process on a project shall be audited at least once during the lifetime of
the project.
The frequency of audits may change based on project requirements. Audit schedule shall
be reviewed and updated periodically to reflect the changes.

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without the approval of the Management is prohibited. Page 6 of 10
 Al-Jaber International Company
Procedure
System of CONTROL PROCEDURE
FOR AUDITING
Original Issue Date: Revision Issue date:
Doc. No: AJB-CPA-PR-01 Issue Number: 01 Revision Number: 01
01st January 2016 09th October 2018
7.3 Audit Notification
The Project QA/QC Manager shall issue an audit plan Doc. No: AJB-IMS-PR-03 to the
Department Manager (the auditee).
The audit plan shall detail the following.
 Audit Date
 Auditor(s)
 Audit start time and approximately completion time
 Audit Scope i.e. Department, Process
 Audit Criteria
The auditee shall acknowledge receipt of the audit plan and confirm the date.

7.4 Audit Preparation

The auditor shall develop a checklist to aid in conducting the audit. Refer to Audit checklist
Doc. No: AJB-IMS-PR-03
The auditor shall verify the closure of findings from the last audit conducted on the
department or project have been actioned. The auditor shall verify the closure of the
findings during the audit for any remaining open items since previous audit(s).
The auditor shall re-confirm the time and date as required with the auditee.

7.5 Conducting the Audit

The auditor shall conduct the audit in the following manner.
1) Opening Meeting with Auditee.

The auditor during the opening meeting shall discuss the audit with the
auditee, confirming the scope, audit criteria and reporting of the audit.
2) Confirm the basis.

 The auditor shall confirm the basis of the audit process of the department.
Identifying the roles and responsibilities of the personnel as part of the
audit scope identified in the Audit Notification Plan.
3) Establish the process

 The auditor shall establish the inputs and outputs, the controls and
mechanisms of the process.

4) Search for Objective Evidence

 The auditor shall search for objective evidence to support compliance to

the stated procedures, applicable standards and as required contract
documentation.

5) Check back
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 Al-Jaber International Company
Procedure
System of CONTROL PROCEDURE
FOR AUDITING
Original Issue Date: Revision Issue date:
Doc. No: AJB-CPA-PR-01 Issue Number: 01 Revision Number: 01
01st January 2016 09th October 2018

 The audit shall ensure that audit criteria have been complied with and that
planned arrangements are being met.
 Ensure that audit trails have been documented.
 Ensure previous audit findings are verified as closed and/or corrective
action is on-going.

6) Close Out Meeting with Auditee

 Present preliminary report.

 State positive items identified during audit.
 Present findings against the relevant criteria evaluation of findings and
categories.
 State any observations, recommendations, Non-conformances or
improvements identified during audit.
 Agree follow-up period for audit findings.

The auditor shall ensure those notes taken during the course of the audit are clear and
concise. The auditors notes may be retained by the Project QA/QC Manager for further use
in future audits.
The auditor shall ensure that the auditee is aware of the audit findings prior to close out of
audit.
The findings shall be agreed between the auditor and the auditee.

7.6 Audit Reporting

The auditor shall issue a preliminary audit report at the close out meeting if available.
The auditor shall report audit findings in the standard audit report format Doc. No: AJB-IMS-
PR-03

The auditor shall prepare the final report and issue the report within 10 working days
of the audit to the auditee. The number of the samples found must be stated in the
report. The report shall be reviewed by the Project QA/QC Manager and approved by
the Project Director prior to issue to the Auditee.

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without the approval of the Management is prohibited. Page 8 of 10
 Al-Jaber International Company
Procedure
System of CONTROL PROCEDURE
FOR AUDITING
Original Issue Date: Revision Issue date:
Doc. No: AJB-CPA-PR-01 Issue Number: 01 Revision Number: 01
01st January 2016 09th October 2018

8. Audit Follow-Up

The follow-up period for audit findings shall be agreed with the auditee. The Project
QA/QC Manager shall ensure that the follow-up occurs. Audit finding shall be closed
out within the stipulated period noted on the audit report which shall cover the target
completion dates of NCR reports. The audit Non conformances and improvement
note shall be logged in a Non Conformance / Improvement Note log. The closeout
NCR and Improvement Note that requires corrections shall be verified during the next
scheduled audit.

9. Non-Conformances – Issuance / Closure

A non-conformance report Doc. No: AJB-IMS-PR-05 (Attachment No-3) shall be

issued when no evidence of compliance is identified by the auditor
The non-conformance report shall state the following:

 Audit reference Number

 Audit Date
 Non-Conformance Number (Numbers should be sequential)
 Audit Scope i.e. department, project, process
 Procedure/ Standard Reference Number
 Section/ Clause reference
 Description of Non-Conformance including number of samples etc.
 Immediate Corrective Action (if applicable)
 Corrective Action (After agreement between auditee and auditor/QA )
 Root Cause Analysis
 Agreed Time Frame for Corrective Action Implementation
 Verification of Corrective Action Implementation
 Non-Conformance Close-Out Date.

1. The Non-Conformance Report (NCR) shall be issued with the audit report.
2. The auditee shall propose the necessary corrective action. The auditor and/or
the Project QA/QC Manager may promote a form of corrective action, but the
responsibility lies with the auditee.
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without the approval of the Management is prohibited. Page 9 of 10
 Al-Jaber International Company
Procedure
System of CONTROL PROCEDURE
FOR AUDITING
Original Issue Date: Revision Issue date:
Doc. No: AJB-CPA-PR-01 Issue Number: 01 Revision Number: 01
01st January 2016 09th October 2018
3. The corrective action shall be proposed and agreed within 3 days of receipt of
Non-Conformance report.
4. The auditee shall inform the QA Manager when the corrective action has been
implemented.
5. Where corrective action implementation dates have passed the Project QA/QC
Manager shall contact the auditee to determine the status. If no action has
been taken the matter shall be brought to the attention of Senior Management.
6. A log Doc. No: AJB-IMS-PR-05) shall be maintained identifying the current
status of each issued non-conformance.
7. A non-conformance report can be issued at any stage following identification of
non-compliance to the Quality policies and/or procedures.

10. Trend Analysis

After the completion of each audit the Project QA/QC Manager shall perform a trend
analysis on all audits conducted. The analysis shall identify common areas of strength
and weakness in the QMS. A preventive action plan shall be developed for areas of
weakness to ensure further occurrences do not occur. The trend analysis shall be
reviewed in the Management Review meeting.

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