Types of audit

Posted March 21, 2009 - 10:34 by isohelpline

There are two types of audits:


Internal audit
External audit





Internal audits


Internal audits are first party audits. First party audits are those of carried out by an organization on itself to confirm to management that the system is working effectively. Internal audits are example of first party audit.


An Internal Audit is used to assess conformity, evaluate effectiveness, and identify opportunities for improvement. In addition, internal audits help you prepare for external audits.


Reasons for First Party audits




  • Quality Assurance Standard requires it.


  • Control Mechanism utilized by management.


  • To correct non-compliance before external bodies find them.

By taking the opportunity in establishing an internal audit system, management is making available an extremely useful and powerful tool for improving business. If a company is to find for itself the kinds of non-compliance that external bodies are likely to find, it should carry out its audits internally very similarly to the way external audits are carried out.
Reminders for Internal Audit.


Employees should remember to:




  • Provide brief, honest answers to questions


  • Answer specific questions; remember that the auditor is reviewing the process – not the employee


  • Be cooperative, not misleading or defensive


  • Ask for clarification if they don’t understand


  • Refer auditor to the right person to answer questions out of their job scope

Questions that auditor may ask:




  • What is the overall purpose of this process?


  • Please describe your role and responsibilities.


  • What are the process inputs and who supplies them?


  • What resources are needed for this process?


  • What are the process outputs and who receives them?


  • How do you know what to do?


  • What training, skill, and experience are needed?


  • Show me, or tell me, how you do it.


  • How do you know if it is done right?


  • When it is not right, what do you do?


  • What records are kept of this activity?


  • How is the process controlled?


  • What are the process objectives/


  • How is the performance measured?


  • How could this process be improved?




External audits


These basically are audits done by external agencies and there are at least two distinct types of external audits - second and third party.


Second party audits


These are audits carried out by one company on another and are those which originally came along with the idea of quality assurance where a major purchaser would audit its suppliers.


Third party audit


As a result of the huge growth in interest in quality assurance during the 1960's and 1970's, more and more second party audits and assessments were being carried out and some companies in certain fields had to employ specific people whose sole task was to accompany visiting auditors around the company. Clearly this state of affairs was helping nobody, particularly the supplier. Third party audits are audits conducted by independent parties (parties other than supplier and customer).


The ISO 9000 series standards are used mainly for Second and Third party audits.


Reasons for a company to audit his suppliers:




  • Quality Assurance standards imply the need.


  • Provides input to selecting grading & approving suppliers.


  • Provides help to improve quality system of suppliers.


  • Increases mutual understanding of quality requirements.

Many major purchasers carry out supplier audits to advise user departments of areas of weakness in suppliers so that appropriate contract and/or surveillance mechanisms can be instigated if the supplier is given work. It can also highlight the additional costs likely. 


Reminders for External Audit


To prepare for an audit, your managers should:




  • Become familiar with the documents for their area


  • Walk through the area for a spot check on operations


  • Verify everyone knows and follows document control processes


  • Ensure the work areas are clean and orderly


  • Confirm that past non-conformities have been fixed


  • Brief employees on how to interact with auditors


  • Communicate a positive view about the audit - it's a learning opportunity

For external audits, auditor needs a guide, your guides should:




  • Know the management system and how it operates


  • Understand the audit plan and functional areas


  • Be available to stay with the audit team


  • Refrain from speaking during interviews unless requested by the auditor


  • Act as witnesses for any audit findings


  • Help keep the auditors on the planned schedule


  • Take good notes for possible follow-up actions

Employees in the areas to be audited should:




  • Understand the quality policy and management system objectives and their role


  • Prepare by participating in internal audits


  • Know where their documents are located


  • Be able to quickly retrieve their records


  • Know how to respond to auditor questions


  • Be prepared to demonstrate their activities


  • Understand the policy and management objectives for their area


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