5‑40 Internal audit and management revie5‑40 Internal audit and management review

5‑40 Internal audit and management review

(1) Subject to subsection (2), internal audits and management reviews must be conducted of the effectiveness of the management practices of the holder of an approved arrangement for a kind of export operations in relation to prescribed milk or milk products that are carried out at a registered establishment in ensuring compliance with the matters referred to in subsection 5‑38(1).

Note: An internal audit under this section is not an audit under Part 1 of Chapter 9 of the Act.

(1A) Subject to subsection (2), at least one internal audit under subsection (1) must be completed before the end of each of the following periods: (a) either: (i) in relation to an approved arrangement that is in force on the day this subsection commences—the period of 12 months beginning on that day; or (ii) in relation to an approved arrangement that takes effect after the day this subsection commences—the period of 12 months beginning on the date the approved arrangement takes effect; (b) the period of 12 months after the completion of the last internal audit after the commencement of this subsection. (1B) At least one management review under subsection (1) must be completed before the end of each of the following periods: (a) either: (i) in relation to an approved arrangement that is in force on the day this subsection commences—the period of 12 months beginning on that day; or (ii) in relation to an approved arrangement that takes effect after the day this subsection commences—the period of 12 months beginning on the date the approved arrangement takes effect; (b) the period of 12 months after the completion of the last management review after the commencement of this subsection. (2) Internal audits are not required to be conducted if: (a) fewer than 3 people are employed at the registered establishment to carry out export operations in accordance with the approved arrangement; and (b) management reviews are conducted in accordance with the approved arrangement. (3) A record must be made of the following: (a) each internal audit and management review conducted under subsection (1); (b) the results of each internal audit or management review; (c) each decision (if any) to take action as a result of an internal audit or management review; (d) each action taken as a result of an internal audit or management review.

Note: The holder of the approved arrangement must retain each record made under this subsection for 3 years (see subsection 11‑8(2)).