Scene 1 (0s)
[Audio] (pause: 2) In this audit byte, you'll understand definition and difference between first-party, second-party and third-party audit (pause: 3).
Scene 2 (13s)
[Audio] According to ISO 19011:2018, an audit is a systematic, independent, and documented process to obtain objective evidence and evaluate it against defined audit criteria. Internal audits, or first-party audits, are done by or on behalf of the organization itself. External audits include second-party and third-party audits. Second-party audits are conducted by interested parties, like customers or even if you supplier audit, it'll be called second party audit Third-party audits are performed by independent bodies, such as certification agencies or regulators. (pause: 1).
Scene 3 (55s)
[Audio] (pause: 1) An audit is a structured way to check if work is done according to defined standards like ISO 9001. It is planned, meaning it's not done randomly but follows a schedule. It is independent—the auditor should not be the person doing the work or direct responsibility. It is evidence-based, meaning decisions are made from facts, not personal opinions. And it is used to check compliance, like whether processes meet ISO clauses or company policies. (pause: 1).
Scene 4 (1m 31s)
[Audio] (pause: 1) Let's start with the first type - First Party Audit. This is conducted within the organization, either by internal auditors or external consultants hired by the organization. Its main purpose is to check compliance with internal policies and ISO 9001 standards. (pause: 1).
Scene 5 (1m 52s)
[Audio] (pause: 1) A Second Party Audit is done by a customer on their supplier. It checks whether the supplier meets all agreed requirements - both contractual and regulatory. The goal is to ensure quality control throughout the supply chain. (pause: 1).
Scene 6 (2m 12s)
[Audio] (pause: 1) A Third Party Audit is conducted by independent certification bodies. It's used to check compliance with ISO 9001 for certification. These audits can also be carried out by government or regulatory agencies. (pause: 1).
Scene 7 (2m 31s)
[Audio] (voice: Matt) (voice-volume: loud) (pause: 2) Let's take a real-life example from a brake pad manufacturing company. An Internal Audit could be the QA team checking process compliance or the QMS auditor reviewing the maintenance department. A Second Party Audit might be Ford, the customer, auditing the company's process. And a Third Party Audit would be done by a body like TUV SUD for ISO 9001 certification. Each audit serves a different purpose depending on who initiates it. (pause: 1).
Scene 8 (3m 7s)
[Audio] (pause: 2) This table summarizes the three main audit types: A First Party Audit is done by your own company or a hired consultant, mainly for internal review or self-assessment. (pause: 1) A Second Party Audit is carried out by your customer to evaluate you as a supplier. (pause: 1) And a Third Party Audit is done by a certification body or government agency to meet ISO or legal requirements. (pause: 1).
Scene 9 (3m 39s)
[Audio] (pause: 1) Let me ask you a quick question ? Ready (pause: 1) Question: If we hire a consultant to audit our system - is that first, second, or third party? (pause: 3).
Scene 10 (3m 57s)
[Audio] (pause: 1) Well, It is a First Party Audit, wondering why ? Let us see (pause: 1).
Scene 11 (4m 7s)
[Audio] (pause: 1) So how do we decide the audit type? If the audit is initiated by your organization—even using a consultant—it's a First Party Audit because it's done on your behalf. If a customer audits you or audits your supplier, it becomes a Second Party Audit. And if a certification body audits you, it's a Third Party Audit. (pause: 1).
Scene 12 (4m 31s)
[Audio] Same audit game, different levels of stress!" 😅 (pause: 12).