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1st, 2nd and 3rd Party Audits - Definition

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audits and auditing, first party audit, second party audit, third party audits and auditing
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  Post Number #1  
Old 18th May 2007, 10:41 AM
CarolX's Avatar
CarolX

 
 
Total Posts: 2,172
Let Me Help You 1st, 2nd and 3rd Party Audits - Definition

Hi All -

I thought I would start this thread to clear my mind on what a 1st, 2nd and 3rd party audit is. My confusion stems from some confusing posts and threads about contracting internal auditors, and then refering to them as 3rd party.

Here is my definition

1st party - A regular, full or part time employee of the company.

2nd party - An independent contractor hired by the company to perform internal audits.

3rd party - An auditor employed by the Registrar to perform registration and surveliance audits.


I looked in the Wiki for this definition and couldn't find anything. Maybe after discussion we can add.

Thanks all!!

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  Post Number #2  
Old 18th May 2007, 10:55 AM
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Total Posts: 69
Re: Definition of 1st, 2nd and 3rd party audits

Hiring an auditor to perform your internal audits would still be considered an internal 1st party audit.

a 2nd party audit would be an audit by a commercial consumer.
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  Post Number #3  
Old 18th May 2007, 10:56 AM
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GStough

 
 
Total Posts: 1,113
Re: Definition of 1st, 2nd and 3rd party audits

Hi CarolX,

An addition: 2nd party can also include supplier audits, as I understand it.

  Post Number #4  
Old 18th May 2007, 10:58 AM
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BradM

 
 
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Re: Definition of 1st, 2nd and 3rd party audits

Good idea, Carol.

Paraphrased from the ASQ CQA primer:

INTERNAL:
First party audit are typically internal audits.

EXTERNAL:
Second party audits typically involve the customer auditing the supplier.

Third party audits are done by "outsiders", and have no affiliation with the auditee.
Thank You to BradM for your informative Post and/or Attachment!
  Post Number #5  
Old 18th May 2007, 11:13 AM
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AndyN

 
 
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Thumbs up Re: Definition of 1st, 2nd and 3rd party audits

What Brad posted are the classical definitions.

However the water's muddied a little, when people like me, do audits of clients' quality systems instead of them using their own employees (because, really we're '3 party' auditors - we are paid just like them, we aren't on the organization's 'payroll' and we aren't their customer, either).

Maybe it's time to change the definitions?
  Post Number #6  
Old 18th May 2007, 11:17 AM
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Randy

 
 
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Re: Definition of 1st, 2nd and 3rd party audits

Here's what I teach:

1st Party - An internal audit that an organization performs on itself

2nd Party - An external audit that an organization performs on a supplier of goods or services

3rd Party - An external audit that is conducted by an independant organization upon another organization.
  Post Number #7  
Old 18th May 2007, 11:18 AM
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Re: Definition of 1st, 2nd and 3rd party audits

Check this out Carol

http://elsmar.com/pdf_files/Audit_E.pdf

Marc has it all defined for us on slide 12
Thank You to ScottK for your informative Post and/or Attachment!
  Post Number #8  
Old 18th May 2007, 11:18 AM
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SteelMaiden

 
 
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Re: Definition of 1st, 2nd and 3rd party audits

Quote:
In Reply to Parent Post by AndyN View Post

when people like me, do audits of clients' quality systems instead of them using their own employees (because, really we're '3 party' auditors - we are paid just like them, we aren't on the organization's 'payroll' and we aren't their customer, either).

Maybe it's time to change the definitions?
No, but you are "rented" to take the place of an employee for the duration of the audit. Not to say that the definitions couldn't be tweaked, but is there really a value in it?
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