Six Sigma and Internal Audit

Six Sigma – iSixSigma Forums Industries Financial Services Six Sigma and Internal Audit

  • This topic has 8 replies, 5 voices, and was last updated 3 years ago by Ronald.
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  • #54968

    Mazen S.

    Dear all,

    I am a banking Internal Auditor working for a major financial bank in the Middle East/Gulf region.

    I am interested to know how to apply the Six Sigam withing the internal audit methodology???

    Wish you all the best in your endeavours.



    Don Strayer

    Six Sigma is not an audit method but it could be used to improve your auditing processes.


    Mike Carnell

    @mazencpa I have never done this – applied SS to the auditing process. I cannot offer any advice from my experience beyond how I would begin applying it if I were asked to do so. Like anything else you should begin with a problem statement but in this case it sounds like there may not be one so lets just assume we are doing continuous improvement to the audit process. I would begin with a process map of your process (you are trying to improve your process not theirs). Identify VA and NVA.

    Get customer input. That would be the people you are doing the audit for, people who receive the reports, people being audited, etc and see what their expectations are. Get data to see if you meet them and identify on the process map where those expectation are addressed in your process.

    After that I would sit back and look at it a while and decide if I am doing something that makes any sense or if I am just wasting time.

    Just my opinion.


    Mazen S.

    Thanks Mr. Carnell for your response.


    Shelby Jarvis

    In addition to the advice from the first two responses, you may also find value in tools or techniques in 6 sigma.

    Within the measure phase, we use tools to validate our measurement system. You may be able to apply techniques to assure the data and observations you collect are valid.

    Depending upon the types of audits; you may be interested in knowing your sample is random. If you are auditing in a manner that multiple locations are being audited, you may look for ways to compare results (ANOVA for example).

    Techniques also exist which may be used to “fold over” one audit to another to assure the methodology between locations are equitable.

    It really depends on the situation and what you hope to learn from the analysis.


    i’m working on MSC thesis with title “Measure the quality of internal audit using six sigma approach ” if you are interested we can shear or knowledge


    Everton da Silva Paula

    Hi @mazencpa, I’ve never faced this opportunity before but I suppose that a great way to use six sigma on this could be improve the processes adherence to the standards or procedures. (If your process is struggling to reach a hight level of adherence you can use DMAIC to improve it or even if your auditing results have been showing a great spread over the time you can reduce it and after improve)

    I hope it has given you a good insight!


    BMGI India

    The Lean Six Sigma methodology offers implementatin of measurments based on strategies that mainly aims on process imporvement and reductions of duplicacy. The Lean Six Sigma seeks to improves the quality of process outputs by identifying and removing the causes of defects and minimizing variability in business processes by using a set of quality management and statistical tools.


    I spent several years working for a major credit card processing corp in the U.S and six sigma is indeed a very useful venture.
    The main tool you should look into is called a Detailed Process Map. This tool will define the details of the process you will audit and also define the areas in the process most likely to result in error.
    In my experience it was the accounts receivable and accounts payable process that scores the highest.
    If you are unclear of what a Detailed Process Map is this sight has good tutorials on the topic.

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