First Party Audit Also termed as Internal audit conducted by,

or on be-half of organization itself for management review(internal purpose)

Second Party Audit External to organization i.e., Auditing

undertaken by one organization upon other organization to establish a confidence in their ability to meet ones requirements

Third Party Audit Audit undertaken by independent authorities

like Accredited certification bodies etc…

Auditor : Person with competence to conduct audit

Audit team: One or more auditors conducting an audit , supported if needed by technical expert. Note:(i) audit team leader is one of the audit member.(ii)

Audit team can include auditor -in –training.

Audit Scope: Extent and boundaries of Audit.

Competence: Demonstrated personal attributes and demonstrated ability to apply knowledge and skills.

Criteria of Audit team leader

Based on the auditee, Lead auditor is appointed by the Certification body.

When Joint audit is conducted, prior to audit auditing organizations decide mutually on specific responsibilities and authorities of the team leader for audit.

I )Overall Objective of audit program Audit scope, Audit objectives and Audit

criteria is defined between the audit client and audit team leader in accordance with audit program procedure. Any changes of the same should be agreed to by same parties.

II) Feasibility of Audit Sufficient and appropriate information

obtained to plan audit. Adequate Cooperation from auditee and

also adequate item and resources.

III) Selecting Audit team

1. If single auditor all duties is performed by him.

2. Based on size of audit team, following to be considered

Audit objective , scope and criteria and estimated duration of audit.

Audit is combined or joint. Statutory, regulatory, contractual and

certification applicable. Ability of audit team to work together.

3. Establish Initial Contact with auditee• Establish communication with auditee• Confirm authority to conduct audit• Make necessary arrangement for audit,

request relevant documents, including records.

As discussed in points I ,II and III are the preliminary roles performed before the audit begins .

1. Prepare On-site Audit activities (a) PrepareAudit Plan Audit plan is prepared which include the

scope, objective of audit. Identification of functional unit and process

to be audited in organisation. Roles and responsibility of audit team

member is assigned. Identify auditees representative for audit

and reporting language is set. Matter related to confidentiality is

discussed. Audit follow up action

(b)Assigning work to the Audit Team TeamLeader, In consultation with team,

should assign to each member resposibility for auditing the function, sites etc..

( c) Prepare work document Audit team member should review to

the information relevant to audit assignments and prepare work documents.

2. Conduct On-site Audit Activities (a) Conduct opening meeting To confirm audit plan, confirm

communication and opportunity for auditee to ask question

(b) Communication during audit- exchange data amongst team member of audit.

(c) Roles and responsibilities of observer and guides – They should be assist the team on request of audit team leader.(d) Collect and verify Information- For appropriate sample Audit evidence to be recorded.

(e) Generate audit findings – Generated based on audit criteria . Findings can be Conformaties and Non conformaties.

(f) Prepare Audit conclusions – Review audit findings, as per appropriate data collected and discuss audit follow-up.

(g) Conduct closing meeting – Its chaired by audit team leader. Concluded by presenting audit findings such that its understood and acknowledged by the auditee.

Time frame the auditee to present corrective and preventive action plan.

3. Preparing , approving and distributing the audit report

(a) Prepare audit report – Team leader is responsible to prepare and contents of audit report.

(b) Approving and distributing the audit report – the report should be approved and then issued within

the agreed time period.

4. Completing Audit – Its complete when all activities of audit plan has been carried out and approved report is distributed.

5. Conduct audit follow-up – Audit may indicate corrective and preventive or improvement action plan as applicable.

I Overall Objective of audit programII Feasibility of AuditIII Selecting Audit team

1. Prepare On-site Audit activities2. Conduct On-site Audit Activities3. Preparing , approving and distributing

the audit report4. Completing Audit5. Conduct audit follow-up