What Is Auditing & Types Of Auditing In India

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Auditing

 

Auditing is the on site verification activity, or it is like inspection and examination of a process or of a quality system. An Auditing is applicable on entire Organizations or an Audit must be specific to a function or process, or a production step.

Some Audits are named according to their purpose and scope.

 

3 Types of Audit

There are 3 Kinds of Audit and they are as follows:-

 

  • Product Audit:-  In this an examination which is done of a particular product and service to evaluate whether the particular product or services conforms to the requirement or not.
  • Process Audit:-  It is a kind of verification done to check whether the processes are working within established limits or not.
  • System Audit:-  An audit is conducted for a management system. Auditing is done to check the quality management system is whether maintained or not.

 

 

Internal and External Audits: first Party, Second and third party Audits:

 

 

  • First Party Audit: It is done within the Organization to measure its strength and weaknesses against its own methods and produces i.e. it is an internal Audit which is performed by the Auditors who are hired by the Organization itself but they should not be having any vested interest in the audit result of the area which is audited.
  • Second Party Audit: It is an external Audit which is done or performed on the supplier by a customer or by a contracted Organization on behalf of a customer.
  • Third Party Audit:  It is performed by an Audit Organization independent of the customer-supplier relationship and is free from any kind of conflict of interest.