Advice needed - setting up a new database

Since there appear to be a number of "mandatory" events that go along with each observation, the data record gets kind of "wide."

Ideally, this would be managed in a real database. However with a bit of work, you can make Excel behave like a database. The attached makes heavy use of Excel Tables.
Here is a wiki that will introduce you to tables: http://www.utteraccess.com/wiki/Tables_in_Excel.

Also I use data validation in the data table, so here's some words on that: http://www.utteraccess.com/wiki/Data_Validation

In the attached there are two sheets.

The lookup sheet is where you assign values for the validations on the data sheet. Since these are Excel tables and the validations are built on them, the drop down lists will update automatically when values are added / changed / deleted from these lists.

The table on the data sheet is the center of the process. Unfortunately you have to duplicate, Document Code and Batch Numbers for each observation. However since you can look these up using the drop down menus, it is not that bad.

One of the advantages of Excel Tables is that they "remember" and copy down formulas, formats and validations automatically as rows are added.

I have some comments on the fields.
Observation: This is intended to be a consecutive number but you can put anything in there. The purpose of this cell is to "force" a new line on the table so everything else copies down including the drop down lists.
Document Code: is validated from the Document Code Table
Batch: is validated form the Batch Table. You don't say whether there is a relationship between document codes and batches. If there is, there is a way to "cascade" the lookups so when you pick a document code, you only get a list of valid batches for them.
Observation is a free-form entry.
All Date columns have a validation on them limiting them to the current date or earlier.
All Sign Off columns are validated from the Personnel table.

With the data organized in this format, you can use pivot tables to pull up any document to view it in detail or do things like pull all observations that had an observation date in the last month or an open Sign Control date or just about any filtering or grouping of data you can think of. With the data in this format, you can make a pivot table to give you a report that looks like the one in the Word Document.

I recommend finding a good pivot table tutorial on line. Also I recommend looking up slicers that control the pivot tables.

You can export a query from Access to Excel. They work well together.

If you want to use MS-Access. There are tools and programs for Excel wherein you can read data from Access and write to it.

Microsoft also offers runtime-only licenses for Access. These licenses are free and they let you do anything that was developed using a paid license. So you can use the paid license to develop tables and relationships, make queries, user forms and reports. The people with the runtime licenses can access the data, do data entry, run the reports, etc. They cannot modify or create anything which is probably what you would want anyway.

So you do not need a paid Access license for all accounts. You just need a paid license for the developers.