Company Confidential

Registration Management Committee

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Asking the Right Questions Right

Dale GordonAerojet Rocketdyne

July 16, 2014

RMC Workshop Long Beach, CA 16 – 17 July 2014

Registration Management Committee

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RMC Workshop Long Beach, CA 16 – 17 July 2014

Registration Management Committee

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Appearance Matters

RMC Workshop Long Beach, CA 16 – 17 July 2014

Registration Management Committee

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• APPEARANCE - FORMALITY OF THE AUDIT

• PUNCTUALITY - DO NOT WASTE AUDITEE TIME

• PREPAREDNESS - CRITICAL TO SUCCESS

• FAIRNESS - BE UNDERSTANDING OF ERRORS

• CALM - AUDITOR CAN SET THE TONE

• POLITE AND COURTEOUS - BE POSITIVE

• DIRECT AND CONCISE - DON’T INTERROGATE

• COMMUNICATION - ORAL, WRITTEN, BODY

• OBSERVANT - ATTENTION TO DETAIL

• LISTENING - PAY ATTENTION

Be Professional

RMC Workshop Long Beach, CA 16 – 17 July 2014

Registration Management Committee

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Know Your Customer

RMC Workshop Long Beach, CA 16 – 17 July 2014

Registration Management Committee

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Remember Who You are Auditing:• METHODS

– OPEN ENDED QUESTIONS

– PROBING - TELL ME MORE

– SILENCE - IS GOLDEN

– PARAPHRASING - RESTATEMENT

• CROSS CHECK WITH OTHERS

• SUPPORT WITH DOCUMENTATION / RECORDS

• CLOSE WITH STATED POSITION - OKAY OR NO

RMC Workshop Long Beach, CA 16 – 17 July 2014

Registration Management Committee

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What’s the Risk?

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RMC Workshop Long Beach, CA 16 – 17 July 2014

Registration Management Committee

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WEIGH THE CONSEQUENCES

Risk may go undetected, or even increased by the application of insufficient, inadequate, or incapable resources including:

• Designs, Personnel, Time

• Equipment / tools

• Processes or Materials, Plans, instructions

• Inspections / tests

• Workspace and environment

• Others ?

RMC Workshop Long Beach, CA 16 – 17 July 2014

Registration Management Committee

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ALLOW FOR MULTIPLE SOLUTIONS

Risk may be controlled, reduced or eliminated by use of:

• Root Cause Analysis, Corrective and/or Preventive Action

• Design enhancement / redundancy

• Improved processes capability

• Fool-proofing / mistake-proofing

• Increased / improved detection methods

• Protective margins / buffers

• Back-up / contingency plans

• Advancing the “state of the art”

RMC Workshop Long Beach, CA 16 – 17 July 2014

Registration Management Committee

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Prior Enterprise Business Model

Customer Support

Pack & Ship& Replace

ENGINEERING

Help Sell it &DESIGN IT!

MANUFACTURING& PROCUREMENT

MAKE ITBUY IT

QUALITY

MAKE SURE ITLOOKS LIKE THE

PRINT!

MARKETING

SELL IT!

Customer &Regulatory

Requirements

RMC Workshop Long Beach, CA 16 – 17 July 2014

Registration Management Committee

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CONSIDER BUSINESS PROCESSES

Plan theBusiness

Resourcethe Business

GenerateOrders

FulfilOrders

ResolveCustomerProblems

CreateCustomerSolutions

BuildCustomer

Relationship

RMC Workshop Long Beach, CA 16 – 17 July 2014

Registration Management Committee

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JUST THE FACTSFOCUS ON THE CONTROL SYSTEM

• NO RECOMMENDATIONS• NO SUGGESTIONS• NO BIAS• NO INSPECTING• OVERALL CONCLUSIONS

RMC Workshop Long Beach, CA 16 – 17 July 2014

Registration Management Committee

The ReportManagement's Responsibility for the Financial Statements

• Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

• Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

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RMC Workshop Long Beach, CA 16 – 17 July 2014

Registration Management Committee

The Report• An audit involves performing procedures to obtain audit evidence

about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

• We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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RMC Workshop Long Beach, CA 16 – 17 July 2014

Registration Management Committee

The Report Conclusion

Opinion

• In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of ABC Company, Inc. as of December 31, 20XX, and the results of its operations and its cash flows for the year then ended in accordance with U.S. generally accepted accounting principles.

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RMC Workshop Long Beach, CA 16 – 17 July 2014

Registration Management Committee

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RMC Workshop Long Beach, CA 16 – 17 July 2014

Registration Management Committee

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Aerospace Markets

RMC Workshop Long Beach, CA 16 – 17 July 2014

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RMC Workshop Long Beach, CA 16 – 17 July 2014

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