Audit
2nd Party Audit
The three different types of Audit
Types of Audits
There are three main kinds of audits:
1. Process Audit
A process audit checks that processes are working within established limits. It evaluates activities or operations against predetermined standards to measure conformance and the adequacy of controls.
A process audit may:
-
Check conformance to defined requirements such as time, accuracy, temperature, pressure, responsiveness, component, and composition.
-
Inspect the resources, materials, and personnel used to convert inputs into outputs, the environment, methods (systems, guidelines) followed, and actions taken to evaluate process performance.
-
Verify the sufficiency and effectiveness of process controls through methodology, work instructions, flowcharts, training, and process documentation.
2. Product Audit
A product audit assesses a specific product or service—such as equipment, processed material, or software—to determine if it meets requirements (e.g., specifications, standard execution guidelines, and client requirements).
3. System Audit
A system audit evaluates the management system. It is a documented activity conducted to confirm, through evaluation and assessment, that relevant components are properly developed, implemented, maintained, and reported according to standard requirements.
Classification of Audits by Relationship
Audits can also be classified based on the relationship between the auditing body and the auditee:
1. First-Party Audits (Internal Audit)
-
Conducted inside an organization to assess its strengths and weaknesses.
-
Performed by auditors within the organization who have no personal stake in the audited area.
-
Measures the organization’s systems, processes, or compliance against external standards adopted by the organization.
2. Second-Party Audits (Supplier Audit)
-
Conducted by a client or contracted organization on a supplier.
-
Governed by contractual agreements, making the audit results legally significant for both client and supplier.
-
Often more formal than first-party audits because outcomes can influence purchasing decisions.
Example:
Manufacturing organizations rely on suppliers for high-quality components. Poor supplier quality can lead to:
-
Reduced efficiency or production loss
-
Late deliveries to customers
-
Product quality issues or recalls
-
Negative market reputation
Well-planned second-party audits help evaluate potential suppliers and ensure quality control for current suppliers, mitigating risks in production and supply chain.
3. Third-Party Audits (Independent Audit)
-
Conducted by an independent audit organization, free from conflicts of interest.
-
Provides an unbiased assessment, often leading to certification, registration, recognition, awards, license approval, references, fines, or penalties.
Performance Audits vs. Compliance and Conformance Audits
Value-added appraisals, management reviews, added value inspecting, and ceaseless improvement evaluation are terms used to depict an audit purpose beyond consistency and conformance. The reason for these audits connects with organization performance. Audits that decide consistency and conformance are not centered around good or poor performance, yet performance is a significant worry for most organizations.
The key distinction between compliance audit reviews, conformance audit reviews, and improvement audit reviews is the assortment of proof connected with organization performance versus proof to check conformance or compliance to a standard or technique. An organization might adjust to its strategies for taking orders, yet assuming that each order is in this way changed a few times, the board might have reason to worry and need to redress the shortcoming.
Follow-Up Audits
A product, process, or framework audit might have nonconformities that require rectification and remedial activity. Since most remedial activities can’t be performed at the hour of the review, the audit program auditor might require a subsequent audit to check that redresses were made and restorative moves were initiated. Because of the significant expense of a single reason follow-up review, it is regularly joined with the following planned audit of the area. In any case, this choice needs to be founded on the significance and risk of the finding.
An organization may likewise lead follow-up audit reviews to check preventive moves were made because of performance issues that might be accounted for an open door opportunity or development. At different times organizations might advance recognized performance issues to the management for follow-up.
Why perform 2nd party audit?
Many people think that such 2nd-party audits might not be necessary once a company is certified to a particular International ISO 9001, etc. standard by an accredited certification body like Euro VERITAS Ltd (accredited from BAR-UK, Euroveritas), but this is generally not true. Even if the supplier (interested party) is already certified after a 3rd-party audit, the organization may still want to get a 2nd party audit and/or inspection to look at special elements of the agreement/job/contract, especially when these elements might not be the same as the ISO 9001 or any other ISO standard requirements. This might not be required by all organizations and is not a requirement to be certified to ISO 9001 or any standard by a CB, but sometimes it is mentioned in some contracts; also some customers/organizations want to be extra assured and confident and hence choose to perform such audits.
Percentage of audits raising non-conformities against ISO 9001 clauses 8.2 and 8.4 during second-and third-party audits.
ISO standards covered for 2nd Party audits (as per requirements from Customer (Organization))
-
ISO 9001: Quality Management System to verify the quality of products and services.
-
ISO 14001: Environmental Management System to verify no harm is caused to the environment.
-
ISO 45001: Occupational Health and Safety (OH&S) Management System to verify organization safeguards their employees from incidents or accidents.
-
GMP: Good Manufacturing Practices to verify organization follows all GMP guidelines.
-
HACCP: Hazard Analysis Critical Control Points to verify whether the organization follows HACCP Plan and Principles.
-
ISO 22000: Food Safety Management System verifies whether farm-to-plate food is safe and consumable.
-
Energy Audits
-
Social Accountability standards e.g., SEDEX, SA 8000
-
Audits against specific EU and UKCA Regulations and Harmonised standards
-
Document reviews Audits
-
Safety Audits
-
Environmental Aspect Impact Analysis audits
Benefits of 2nd Party Audit
The 2nd party audit is an important part of strengthening an organization’s supply chain through verification that all present and future suppliers meet or exceed pre-determined requirements as per the standard. Hiring an External Body like Ascent WORLD, the customer/organization can consider the following advantages:
-
Does the audit by an external body introduce bias? – Using the consultancy Ascent WORLD helps you to understand the ‘0’ bias rule and helps to achieve desired unbiased output.
-
Does auditing as a paid service reduce any objectivity? – Using Ascent WORLD helps you to understand the professional use of objectivity. One of the primary objectives of a thorough supplier audit system is to protect the organization’s image from any quality issues reaching your customer. In addition, the audit can be used to assure the supplier can deliver the quantities of parts to meet demand as per the agreement.
-
Is there oversight happening by certification bodies? – Most certainly Yes- which gives ample opportunities to the customer/organization to hire external bodies like Ascent WORLD to conduct such 2nd party audits.
-
Would the organization benefit from already existing ISO 9001 standard requirements and from a clause on external audit in addition to internal audit? – Absolutely Yes. A well-planned 2nd party or supplier audit system helps assure that the quality of the product is received and the product reaches on time and every time. Not long ago it was revealed that even “benchmark” companies can also experience a supplier quality issue sometimes to avoid this, Contact Ascent WORLD to know more.
-
Should the 2nd Party audits be explicit and in line with management inputs and requirements? – Contact Ascent WORLD to know more.
-
Is there any tendency of the organization to associate such 2nd party audit results with supplier evaluations? – Contact Ascent WORLD to know more.
Different phases of Audit
The 2nd party audit is almost always planned and announced ahead of time and is generally agreed upon in advance. There are four main sections or phases of a 2nd party audit:
1. Audit preparation and readiness
Audit arrangement comprises arranging all that is accomplished ahead of time by interested parties, like the reviewer, the lead auditor, the client, and the audit program supervisor, to guarantee that the audit agrees with the client’s goal. This phase of an audit starts with the choice to lead the audit and finishes when the actual audit starts.
2. Audit execution
The execution period of an audit is much the time called the hands-on work. It is the information-gathering part of the audit and covers the period from landing in the audit area up to the exit meeting. It comprises numerous exercises including on-site audit management, meeting with the auditee, understanding the interaction and framework controls and checking that these controls work, communicating with colleagues, and speaking with the auditee.
3. Audit reporting
The motivation behind the audit report is to impart the after-effects of the examination. The report needs to give the right and clear information that will be viable as a management help in resolving significant hierarchical issues. The audit interaction might end when the report is given by the lead auditor or after follow-up activities are finished.
4. Audit follow-up and conclusion
According to ISO 19011, statement 6.6, “The audit is finished when all the arranged audit exercises have been completed, or generally concurred with the audit client.” Clause 6.7 of ISO 19011 goes on by expressing that confirmation of follow-up activities might be important for an ensuing review.
Significance of 2nd Party Audit Results by the Ascent WORLD
Organizations overall are constantly searching for ways of decreasing expenses and working on quality. In this manner, a hearty framework should be laid out to create, qualify and monitor the supply base. The second-party audit is a significant instrument for supplier management, sourcing high-quality new parts and assemblies, and building a robust supplier base. At Ascent WORLD, we can provide:
-
The guidance and support needed to develop an effective robust 2nd party auditing process for your organization.
-
Foster an audit plan focused on characterized goals custom-fitted to every supplier
-
Meet with the supplier to talk about audit boundaries and answer questions
-
Survey record documentation and confirm the progress of any remedial activities of current suppliers
-
Look at process control reports
-
Assess and inspects storage regions
-
Decide if the supplier can satisfy the amount and conveyance needs
-
Archive proof of non-conformity
Our experts have many years of experience in customized audits for corrective and remedial actions and implement preventive action when necessary.
Our international auditor network stands 24*7 ready to assist you everywhere you find a need.
Our portfolio contains 4000 plus audits already performed, and our services can be combined to provide maximum benefits to you.
