Second-party Entrusted Audit refers to the auditing of suppliers of their products or services by the demander according to their own requirements, also known as supplier evaluation/auditing. The auditors of the second party audits may come from the demander or may be entrusted by the demander to a third-party organization to implement the audits for the following purposes:
- Prove that the supplier or partner continues to meet the requirements.
- Promote suppliers or partners to improve the quality of their products or services and reduce production costs.
- Improving the comprehensive quality of personnel and enhancing the ability for continuous improvement of enterprises.
- Examine other aspects of supplier performance (such as social responsibility, business credit, etc.).
At present, the international practice is to entrust third-party institutions to implement, because third-party implementation has the following advantages:
- To save the cost of investigation and improve the efficiency of investigation.
- The audit activities are more independent and impartial, preventing the influence of the interests of the internal departments of the demander.
- The audit team is more professional and competent.
- Avoiding direct conflict between the demander and the supplier or partner.
- Auditing evaluation reports are more authoritative and persuasive.