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1 INTRODUCTION
International Safety Management (ISM) Code was
introduced as a global regulatory framework to
address human errors and poor management
practices of shipping companies. This was a major
change in approaching maritime safety as IMO’s
earlier attempts to improve shipping safety and to
prevent pollution from ships had been largely
directed at improving the hardware of shipping – for
example, the construction of ships and their
equipment [1].
The ISM Code defines the objectives & the
requirements of the Safety Management System (SMS)
and the responsibilities of the company in designing
and successfully implementing the SMS. Verification
of compliance of all regulations on ships proceeding
to sea is an important facet of the regulatory
framework of maritime safety and the flag states have
been obliged to ensure this through auditing,
inspections, etc., on ships flying their flags.
Chapter IX Regulation 6 of SOLAS lays down
verification of the proper functioning of the ship’s
safety management system by the flag state or an
organization recognized by the flag state [2].
The ISM Code provides an international standard
for safe management and operation of ships and for
pollution prevention. The Code is in two parts - Part
A deals with Implementation and Part B deals with
certification and verification [3] . Section 13 of the ISM
Code mentions in detail about the certification and
periodical verification for compliance with the
provisions of the Code. The Flag State of each ship is
required to conduct regular audits of the company as
well as each ship operated by them, to ensure that the
Development Of Model for Measuring Audit Quality in
Maritime Safety Management
D
.R. Sharma
Western No
rway University of Applied Sciences, Haugesund, Norway
ABSTRACT: The effectiveness of International Safety Management (ISM) Code has been evaluated in many
aspects. However, limited research has been attempted to evaluate the auditing mechanism, its quality, and
links with the effectiveness of the Code. The aim of this Paper is to define the concepts of quality in auditing
and thereafter propose a model for measuring audit quality in maritime safety management. The major
challenge is that almost all auditing literature and research is focused on accounting and financial domain.
Therefore, it was decided to utilize suitable principles and concepts about audit quality from financial domain
and modify them to maritime context. As no theoretical model for Audit Quality in maritime domain is
available, a model sourced from financial audits is modified for use. The framework for recontextualized
modifying of borrowed theories from the disciplines outside the reference discipline, was used on Wooten
(2003) model and Maritime Audit Quality Model (MAQM) has been proposed for evaluating ISM auditing
mechanism.
http://www.transnav.eu
the
International Journal
on Marine Navigation
and Safety of Sea Transportation
Volume 17
Number 4
December 2023
DOI: 10.12716/1001.17.04.
03
782
shipping company and the crew onboard ship
implemented the provisions of the Code.
The implementation framework and processes for
verification of compliance, adopted by various
national maritime administrations, constitute the ISM
auditing mechanism which may be quite different
from each other and could also lead to variation in the
quality of the outcome.
The ISM Code was introduced to address the
human factors and organizational or management
influences in safe management and operations of
ships thereby focusing on a systemic approach aiming
to integrate verification of compliance of all technical
and safety regulations through a safety management
concept. Therefore, the Code aims to support and
encourage the development of a safety culture within
the shipping industry whilst improving compliance
with the requirements of international convention [4].
1.1 Research Question
The paper is focused on the questions - What is the
meaning of the term ‘quality’ in audit and how do
you measure it through a theoretical model?
Thus, the aim of the paper is to identify, clarify,
discuss, and define the concepts of quality, in auditing
context, and thereafter examine the theoretical model
for audit quality.
1.2 Method
The overall analytical framework applied for
answering the research question is by broadly
applying qualitative research strategy. The model
sourced from a different discipline will be modified
for use in maritime context using recontextualized
theory.
2 QUALITY: CONCEPTS AND CHALLENGES
The evaluation of the ISM auditing mechanism for its
quality offers two major challenges – lac<