Audit is a “Systematic”, independent and documented process for obtaining audit evidence and evaluating it objectively. Audit can be classified into internal or external.
Internal audits are also known as first party audits while external audits are known as Second-party and Third-party audits.
During execution of audit practice, person/ department which is under audit is knows and “Auditee” and the person who is conducting audit is known as “Auditor”.
- Internal Audits: Audits in which auditee and auditor both belongs to same organization and conduct the entire audit process within organization only. The purpose of First Party audit is:
- Ensures continued implementation of the management system, to evaluate the effectiveness of system in meeting the stated goals and objectives, and to identify the opportunity for the improvement in the product, process and system.
- Access the progress of management system towards meeting the requirements of set standards by management (including nationals and international standards).
- Identify the opportunity for improvement in system / process to achieve objectives.
- Report unacceptable risk to the management.
- External Audits which is further classified into second-party and third-party audit are conducted in which auditee and auditor both belong from different organization.
External audits are performed on a supplier by customer or be a contracted organization on behalf of customer.
Basic difference between Second party and third-party audits are, second party audits are conducted by a customer to supplier and third-party audits are conducted by an independent body well agreed by customer and suppliers. Usually, customer selects the third-party body who conducts the audit of supplier as per the provided guidelines or QAP (Quality Assurance Protocol).
Audits can be further classified into “Product”, “Process” or “System”.
- Product Audit is examination of a particular product (Hardware, processed material, software or service) to evaluates whether they meet the requirements raised by the customer / or buyer of the product. If audit is conducted for service instead of a product, then it is called “service audit”.
- Process Audit is the examination and cross checking of a specific process against predetermined instructions or standards. Process may include complete manufacturing assembly line as well as a small station where some specific process is being carried out.
- System Audit is conducted on a management system. It can be identified as a document verification activity in which system documents are checked and verified. System audits covers everything within the system (that is, processes, products, services etc.
