Minutes of ASQC Quality Audit Division Business Meeting, by
Richard Powe

March 1, 1997-Los Angeles, CA

A. Call to Order and Quorum

Charlie Robinson called the meeting to order at 8:02 a.m. on
March 1, 1997, and called for a quorum. There being present at
least 15 Regular Members in good standing, including at least 7
Division Council members, a quorum was present.

B. Secretary's Report (Richard Powe)

The minutes for the October 5, 1996, QAD meeting in Los Angeles,
CA, were previously published in the December 1996 Vista and were
approved as published. The 1997 Active Members List was issued in
February 1997. This edition contains 145 names. Very few members
on the list are following the rules established for remaining on
the list. An updated version of the List will be published later
this year to reflect change. Since the establishment of the
Volunteer List in October 1996, there has been only one volunteer
that has come forward.

C. Chairmans Report (Charlie Robinson)

Charlie Robinson reported that the QAD is continuing to improve
and grow. This year we had a record attendance at our conference
and published the first edition of the QAD Auditor Handbook. Each
attendee at the conference received a commemorative edition of the
QAD Auditor Handbook. Regional Councilors held a meeting during
the conference and a list of concerns was developed to improve
communications within the QAD. Ken Love was honored during the
conference as the QAD Member of the Year, for his continued
excellent service to the Division. Ron Kingen, ASQC Treasurer and
nominee for President Elect, was in attendance and was given some
time to speak. Ron stated that the QAD has the reputation of
being the premier division concerning the running of a conference
and he congratulated the division for a superb conference.

D. Treasurers Report (Dick Baehr)

Based on information as of 1/31/97 for Fiscal Year 1996-97, the
Division Finances are: Income $84,738; Expenditures $148,511;
Total Assets $471,269.

E. Conference Committee Report-1997 (Dave Kildahl)

The 6th Annual Quality Conference was an outstanding success.
Over 620 people attended, making it the largest yet. Dave singled
out the excellent support of the entire conference committee,
especially Quitman White who handled Arrangements.

F. Conference Committee Report-1998 (Dennis Arter)

Dennis Arter, the 1998 Conference Chair, discussed the topics
that will be covered at the Galt House in Louisville, Kentucky,
February 26-27, 1998. The four tracks for 1998 will cover:
Reaffirming Core Concepts--sorting the Pieces; Making Audits
Work--putting the Pieces Together; Pharmaceutical, Medical and
Healthcare Applications--piecing Together the Healthcare Audit
Picture; Auditing the Hotel--from Puzzle to Practice. The 4th
track on auditing the hotel will be limited to 30 people and will
involve an actual audit of the host hotel.

G. Vice Chair-Administration Report (Wendy Finnerty)

The Regional Councilors held a meeting during the conference and
8 of the 16 regions were represented. A list of areas that could
be improved was developed and will be worked to satisfactory
resolution. Some Regional Councilor positions are open and Wendy
asked for volunteers to fill the positions. The following regions
have immediate open positions: 9 and 14. Other regions needing a
new Regional Councilor by June are: 1, 2, 3, 4 and 15.

G1. Auditing Committee Report (David Kelly)

This committee has very little activity except for the end of the
Fiscal Year when the committee audits the financial books of the
division. Volunteers are needed for this committee. Anyone
interested in participating on this committee should contact
David Kelly at 800-838-9180.

G2. Bylaws Committee Report (Norm Frank)

Bob Trepanier has stepped down as committee chair after leading
the Division through two revisions of the By-Laws. Norm Frank has
agreed to assume the Chair responsibilities. A revision to the
current (11/11/93) By-Laws is being developed and anyone who has
suggested changes should contact Norm Frank at 505-234-3214;
E-mail: . Suggested changes to date include:
Changing the name of the division; eliminating Regional
Councilors; and completely revising to make the By-Laws more
understandable. Norm is seeking volunteers to assist in
developing the revision. Pending volunteers, a draft of the
proposed changes should be ready for presentation during the
October 1997 meeting.

G3. Examining Committee Report (Jeff Jaswa)

One application for Senior membership has been processed since
the Fall meeting. A new article in Vista should be published to
generate more interest. Help is needed to identify candidates for
Fellow. A suggestion was made from the floor that the Active
Members List identify the classification of members (Senior,
Fellow, etc.). The QAD Secretary agreed to discuss with the
Membership Chair.

G4. Newsletter Report (Dennis Arter)

After 9 years Dennis will be stepping down as the Newsletter
Editor. Our new Editor will be Linda Feaster; 12 Homestead Court;
Mattapoisett, MA 02739; Phone: 508-758-6736 or 800-343-9664; Fax:
508-880-9881; E-mail: . The next edition of the
newsletter will contain a history of the division.

G5. Membership Committee Report (Mike Dempsey)

As of December 1996 we have 14,285 members. The two largest
divisions of ASQC are QMD and QAD. The QAD averaged 378 new
members a month. For the last nine months 1,784 members have quit
the QAD.
REGULAR     12,409
SENIOR         844
FELLOW          70
HONORARY         1
STUDENT        181
SUSTAINING     780
GRAND TOTAL 14,285

G6. Publicity Committee Report (Mike Beeler)

The QAD Booth continues to be used around the country. After this
conference in LA, it will be shipped to Minneapolis. From there,
it goes to Orlando in May for the AQC.

H. Vice Chair-Technical Report (Dennis Arter)

Communication and Coordination have been strong themes on the
technology side of the Division. This affects the Quality Audit
Handbook and its planned revision. It affects the revisions to
the Body of Knowledge for the ASQC certification exam. It also
affects the efforts of the Standards folks as they revise the
10011 auditing document. Finally, some major training initiatives
are being discussed, requiring this communication and
coordination. We continue to have liaison roles with the
Registrar Accreditation Board, the Institute of Internal
Auditors, and the ASQC Training Board.

H1. Certification Committee Report (Dale Reaver)

50% of those taking the June 96 CQA Exam passed. Work is
progressing on development of a revised Body of Knowledge (BOK).
The Chauncy Group of the ETS surveyed experts and used this
survey along with the 1993 job analysis to produce a new job
analysis survey. The pilot survey was sent to 10 CQA's and the
results of this survey will be used to send out a survey to
approximately 1,000 CQA's. The results of this survey will be
used to develop a new BOK to be presented to the QAD Executive
Committee. After approval by QAD Executive Committee, the BOK
will be presented to the certification board for approval. This
new BOK will be used to write test specifications and write new
test questions for the CQA. The current schedule calls for the
revised BOK to be reflected in the June 1998 Exam.

H2. Program Committee Report (Chuck Carlson)

Principle area of involvement is supporting the AQC. The 51st AQC
will be May 5-7, 1997, at the Orange County Convention Center in
Orlando, FL The QAD has been given a two-hour session. Our time
is 9:30 a.m. to 11:30 a.m. on Tuesday May 6th. The QAD program
topic is Reaching Toward Space: The evolution of Auditing. The
QAD managed technical session is also on Tuesday, from 3:30
p.m.5:30 p.m. and the topic is Information, Evaluations and
Actions. The QAD Team for the 51st AQC is: QAD AQC Program Chair:
Wallace Carlson; Division Session Manager: Les Easter; Technical
Session Manager: W. L. Baker; and Paper Reviewers: Les Easter, W.
L. Baker and Wallace Carlson. For the 52nd AQC in Philadelphia,
PA, QAD is seeking volunteers.

H3. Publications Committee Report (J. P. Russell)

The Quality Audit Handbook: Project completed under budget. First
printing available January 30th. 825 Copies shipped in January.
Second printing planned for March will provide another 2500 to
3000 copies. A commemorative edition of the Quality Audit
Handbook was given to all QAD conference attendees in Los Angeles.

Handbook Committee: A subcommittee of the Publications Committee
was formed to maintain and update the Quality Audit Handbook. It
will be the Handbook Committee of Six. To be considered for the
committee please submit your name to J. P. Russell with a brief
paragraph on why you should be on the committee. Committee
members will be assigned a section of the Body of Knowledge and
will be responsible for updating and developing examples that can
be incorporated into a second edition.

The QAD Pamphlet (little tri fold) is available to anyone who
wants to inform others about the Quality Audit Division. It
includes: mission statement, activities (meeting dates and
locations), committee organization, interfaces with other
committees (e.g. certification), CQA , interest in ISO 9000,
vision, and who to contact. A new edition could be printed for
the May AQC that shows the new officers.

The Regional Councilors Handbook has been updated and will be
distributed to the Regional Councilors and the Division Council.
The update is thinner and has been paged for easy referencing.

The committee chair reported that any unauthorized use of the QAD
name in publications should be reported to the Publication Chair,
such as organizations indicating the Quality Audit Division
endorsed or sponsored activities or products that in fact were
not endorsed or sponsored by the Division.

Jo Ann Serilla was accepted as a new member of the Publications
Committee. She will assist the Committee Chair and will be
assigned Specific products for content and distribution control.
Jo Ann Serilla can be reached at: Arch Associates; 41620 Six Mile
Road, Ste 102; Northville, MI 48167; Phone: 810-449-5433; Fax:
810-449-5434; E-mail: .

H4. Standards Committee Report (Archie Bice)

The standards committee met on 2/26/97 and discussed the
following: Placing the latest draft version of the US position
regarding ISO 10011 on the Internet for review and comment by the
QAD; Organizing a subcommittee to work on terminology and conflict
resolution. Some terminology that needs resolution are: management
audit; compliance audit; performance-based audit; and client. Some
issues that need resolution are: multiple auditing standards;
auditor qualifications; should auditors participate in solutions;
what auditors should know about statistics; how to decide what is
systematic and what is isolated; and, how to decide what is major
and what is not major.

I. Liaisons

Judith Ackers is the liaison with the ASQC Training Board. In
this capacity, she is monitoring the development of individual
packages and section packages on CQA refresher training.

Cindy Miller is the liaison with the Registrar Accreditation
Board (RAB) and continues to participate in the RAB's Auditor
Certification Board. The greatest change in the RAB this year has
been addition of the environmental management system registration.

Dennis Arter is liaison with the Institute of Internal Auditors
(IIA). They have recently signed an agreement to work with the
Environmental Auditing Roundtable to provide certification of
third-party environmental management system auditors. This will
place them in competition with the RAB.

J. Strategic Planning Committee Report (Ken Love)

The Strategic Plan and Objectives of the QAD as presently
developed are:

VISION: To be recognized worldwide as the preeminent body of
expertise on quality auditing.

MISSION: To support auditors and other stakeholders by defining
and promoting auditing as a management tool to achieve continuous
improvement, effective communication, and increased customer
satisfaction.

OBJECTIVES:

I. Products and Services: Provide resource information on
auditing practices in a manner that meets or exceeds customer
requirements. Support all ASQC Certification programs involving
an audit element.

II. Membership: Recruit, retain, and engage individuals by making
participation in Division activities a value-adding experience.

III. Organizational Strength/Leadership: Develop and support
Division leadership to enhance the quality, effectiveness, and
efficiency of the Division.

IV. National Issues Involvement: Support national and
international initiatives that promote and enhance sound auditing
practices.

V. Research: Define the principles of quality auditing in order
to identify best practices and to promote continuous improvement.

VI. Outreach and Collaboration: Identify and develop partnerships
with other organizations that use audit concepts.

VII. Communication: Become the publicly-recognized, credible, and
reliable source of information about the development, use, and
results of quality auditing, such that QAD becomes the first
reference for media, academia, and business.

K. Dinner at AQC (Janet Muschlitz)

There will be a QAD dinner at the 51st AQC on Saturday May 3. It
is intended to be a family affair and there will be a small fee
involved to participate.

L. Nominating Committee Report (Dave Kildahl)

The nominees for the QAD 1997-98 year are: Chair: Wendy D.
Finnerty; Vice Chair-Technical: Norman C. Frank; Vice
Chair-Administrative: Janet Muschlitz; Secretary: J. P. Russell;
Treasurer: Richard M. Baehr; Region 1, 2 and 3 OPEN; Region 4
Susan D. Gowen; Region 5 Howard C. Swartz; Region 6 John E.
Sawyer; Region 7 Donald R. Mutziger; Region 8, 9 and 10 OPEN;
Region 11 Quitman White, Jr.; Region 12 Ralph W. Arnott; Region
13 Kurt J. Miller; Region 14 and 15 OPEN; International John F.
Mascaro.

A resolution was proposed from the floor and passed that The
Nominating Committee Chair announce, to the QAD members, who is
on the nominating committee before the committee takes action to
nominate a QAD slate of officers and regional councilors.

M. Open Forum (Charlie Robinson)

The following topics were discussed: Electronic Communication
(Dennis Arter): Beginning July 1, 1997, ASQC Net will be
available to all members as a password-protected extension of the
ASQC Web site (www.asqc.org). This area will provide opportunity
for members to exchange information. The QAD now has a quick
information list available over the Internet to provide info
between meetings. It is a MODERATED List that is controlled by a
List Mom who receives the information and places it on the List.

How to Prepare Papers (Wylie McVay): Suggestions were made
regarding better ways to train people on How to Prepare Papers.

Certification and Strategic Planning (John Stratton): The RAB is
considering a plan to certify internal auditors, just as they now
certify third-party auditors. This is due to pressure from the
international community. There is a need for close cooperation
between the RAB and the QAD, if this occurs. The role of our
current CQA in such a plan is not yet defined. All of this points
to a need to examine internal auditor certification in our
Divisions strategic planning.

QAD Web Page Architecture and Planning (Ed Gardner): The use of
the QAD Web site was discussed.

CD ROM Transactions (Don Mutzinger): A request was made that
future QAD Conference transactions be placed on CD-ROM and be
made available. Further investigation is necessary before a final
decision on the subject can be made.

Over specialization of the auditor (Wylie McVay): Concern was
expressed that auditors were becoming too specialized. This
brought about a considerable discussion regarding the use of
technical specialists (also known as subject matter experts) on
audits. Certain types of audits need technical specialists on the
audit team; however, not all audits need technical specialists and
assigned Audit Team Leaders do not necessarily need to have
technical expertise in the subject/area being audited.

Feedback on the Conference (Wylie McVay): A request was made to
include Room Monitors and Moderators in the Post Conference
Feedback Meeting. It was pointed out that the Conference
Committee person assigned to coordinate Room Monitors and
Moderators did obtain information feedback from the Room Monitors
and Moderators; however, the Room Monitors and Moderators were not
included in the Post Conference Feedback Meeting because this
would involve too many people.

N. Next Division Meeting and Adjournment

The 1997 (51st) Annual Quality Congress will be May 5-7, 1997, at
the Orange County Convention Center in Orlando, FL. The QAD
business meetings will be held at the same location as the AQC as
indicated below:

1998 QAD Conference Committee:   Saturday, May 3, from 8 a.m. to
                                 noon
             Business Meeting:   Saturday, May 3, from 1 to 5 p.m.
Standards Stewardship Committee: Sunday, May 4, from 8 a.m. to
                                 noon
            Standards Committee: Sunday, May 4, from 1 to 5 p.m.
             Strategic Planning: Sunday, May 4, from 1 to 5 p.m.

The 1998 Conference Committee will meet at the Galt House in
Louisville, KY, on Friday, October 10, 1997. The Fall business
meeting will be at the Galt House in Louisville, KY, on Saturday,
October 11, 1997.

O. This General Business Meeting was completed at 2:00 p.m.

ATTENDEES:

The following members of the ASQC Quality Audit Division attended
the March 1997 General Business meeting on Saturday March 1, 1997,
in Los Angeles, CA. They are awarded 0.6 ASQC Recertification
Units for this participation.

Ackermann, Colleen Sue
Ainscough, Harold F.
Altopiedi, Alfred T.
Arnott, Ralph W.
Arter, Dennis R.
Baehr, Richard M.
Baker, Walter L.
Banset, Jr., E. Joseph
Berg, Douglas L.
Bice, Archie E.
Binsberger, Garry K.
Bogden, Mary Ellen
Burns, Cynthia A.
Carlson, Wallace C.
Carpender, Bernie C.
Chaille, Michael
Duarie, Jerry R.
Finnerty, Wendy D.
Frank, Norman C.
Gardner, Edward R.
Gauthier, Peter
Gentry, Dennis
Gordy, Steve
Harral, William M.
Hirzel, Rudolph C.
Horn, Rick
Humphries-Alder, Cynthia A.
Ivens, Ruby
Kelly, David A.
Kempf, Mark
Kildahl, David
Kingen, Ron
Konichek, Daniel
Kotte, Baskar
Kruger, Jim
Love, Ken
McVay, D. Wylie
Miller, Kurt J.
Miller, Ted R.
Minick, Robert R.
Muschlitz, Janet L.
Mutziger, Donald R.
Powe, Richard
Press, Mack
Regel, Terry L.
Reinhart, Linda A.
Robinson, Charles B.
Russell, J. P.
Serilla, Jo Ann
Sheng, Stephen
Stocks, Jr., L. Earl
Stratton, John H.
Thresh, James L.
Tomlinson, Gene
White, Quitman
Ziebell, Leane C.W.