Quality systems audit is classified as Value for Money audit. Faculty of Electrical Engineering, Universiti Teknologi Malaysia (FKE) Skudai subscribed to ISO 9001:2000 Quality Management System (QMS) since 2004. Effective internal audit is required to be carried out at planned intervals to determine whether the teaching-learning process is effectively implemented and maintained. This paper describes the use of Plan-Execute-Report-Monitor (PERM) model to ensure the effectiveness of such audits. It has been observed that the attrition rate among engineering students is higher during the first three years of five years undergraduate electrical engineering program. Initiatives taken to improve the teaching-learning process in large classes were identified primarily to significantly increase the engineering students’ retention rates. The teaching-learning strategies used are cooperative and collaborative learning as improvement measures. Two core subjects offered to the third year undergraduates of the electrical engineering courses are SEE 3043 Signals and Network (SN) and SEE 3512 Electromagnetic Field Theory 1 (EMT 1). These subjects provide the necessary foundation for students to undertake Radio Frequency (RF) and Microwave Engineering related subjects in the senior years. The use of audit reports generated in value-adding to the improved teaching-learning method was examined. Evaluation on the audit process from the planning stage to audit followups was done. The results of the study showed effective audits contribute in ensuring quality engineering education.
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