Second-Party Supplier Auditing

Service summary

An objective supplier evaluation conducted on behalf of a purchasing organisation against its agreed requirements. The audit connects purchasing expectations with evidence from the supplier’s actual processes, personnel and records.

The service gives procurement and technical teams a documented view of conformity and significant weaknesses. Supplier approval, commercial decisions and the selection of corrective actions remain the responsibility of the contracting parties.

Key objectives

• Evaluate agreed supplier requirements
• Examine implementation of critical controls
• Identify material supply-related weaknesses
• Support proportionate purchasing oversight

Methodology

A risk-based audit combines buyer-defined criteria, supplier evidence and targeted process sampling, with transparent reporting of findings and coverage.

• Agree the buyer’s criteria, supplier scope, independence and reporting rights.
• Review specifications, supplier history, complaints and previous audit findings.
• Select processes, records and samples according to supply-related risk.
• Interview supplier personnel and observe selected operational activities.
• Trace sampled orders through controls, checks and release evidence.
• Evaluate evidence against criteria and discuss factual findings.
• Issue the report, limitations and agreed follow-up requirements.

Key outcomes

References: [G04]

• Supplier conformity report
• Evidence-linked findings
• Visibility of critical control weaknesses
• Documented basis for buyer follow-up