Reporting identified problems to the supervisor is a good start, but it seems like the audit should go further and make sure the issues are actually addressed. That's the real purpose, in my view.
Monitoring performance and determining corrective action is the most important role. The audit should identify issues and recommend solutions, not just report them up the chain.
Reporting findings to upper management to ensure proper corrective action is taken is the key, in my opinion. The audit function is there to hold the organization accountable.
I think the most fundamental role of the audit function is to verify the effectiveness of the organization's quality system in preventing substandard performance. That seems like the core purpose to me.
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