1st Party and 3rd Party Auditing Advantages and Disadvantages

[ameelius]

Hi

I'm busy writing a paper at the moment and I have to include the advantages and disadvantaged of 1st and 3rd party auditors. Can anyone help with this? I know what each are but am leaving it to my imagination for the rest. The internet hasn't been forthcoming and there isn't anything in our library.

Thank you

[GStough]

Hi and Welcome to the Cove!

To familiarize yourself with these 2 kinds of auditing, I would suggest looking through the discussion threads found in the Auditing Forums (look at the bottom of this page for the list of various forums). There should be several threads that you may find useful. There may also be applicable threads in other forums, fwiw....

Hope this helps.

[Ted Schmitt]

Originally Posted by ameelius

Hi

I'm busy writing a paper at the moment and I have to include the advantages and disadvantaged of 1st and 3rd party auditors. Can anyone help with this? I know what each are but am leaving it to my imagination for the rest. The internet hasn't been forthcoming and there isn't anything in our library.

Thank you

I´m assuming you want the pros and cons of 1st party (internal auditors) and 3rd (CB auditors) on your own QMS...

1st party auditors generally know the QMS being audited better than a 3rd, know the interaction of the processes better, know the auditees and the general ins and outs... a 3 rd party auditor is a professional, has experience in the auditing practice... tends to read body language better, usually has a better management view and can analyze the QMS as a whole... 3rd party auditors get a snap shot of the QMS... are only there for a couple of days where as a 1st party is in the organization all day... the internal audit tends (should) be "deeper" and gets to find more "stuff" (right and wrong)...

there´s more... but that´s what comes to mind in a VERY simplified manner...

[ameelius]

Thanks for the welcome, I'm pleased to find this site, it looks incredibly useful. I'm an environmental consultant but don't have much to do with the auditing side of things. Any help is much appreciated

[qualitychic]

I agree with tedschmitt's comments.

The problem with 1st party audit is that because the people who conducts audit uses the system everyday, they have a tendency to overlook/ignore things that they know the top management will not do anything to fix it. By using a 3rd party to conduct the audit, the top management will sort of pressured to take care of these types of items. Plus, it's always good to have an outsider to review your system anyhow.

[Randy]

1st party is an internal audit where an organization takes a look at itself.

3rd party is an extrensic audit where an organization is looked at by an independant, non-biased, objective organization or auditor.

Advantages and disadvantages have been discussed for years and are really too lengthy and detailed for just here. Follow the Threads we have on auditing and use the search tool to help you out in order to save time.

[tarheels4]

Originally Posted by Randy

1st party is an internal audit where an organization takes a look at itself.

3rd party is an extrensic audit where an organization is looked at by an independant, non-biased, objective organization or auditor.

Advantages and disadvantages have been discussed for years and are really too lengthy and detailed for just here. Follow the Threads we have on auditing and use the search tool to help you out in order to save time.

I agree with this, but what does "extrensic" mean? Did you mean external?

[Wes Bucey]

I like Randy's use of the word "extrinsic!"

"Extrinsic" in the way Randy has used it means "something of value outside the process of the internal audit which does not directly affect the internal audit, but has value to the owner/operator of the internal audit."

A weak analogy might involve a wedding ring. The ring's intrinsic value might be the raw value of the metal if melted down plus the workmanship which might make it attractive to an unrelated third party (a pawn shop sale.) The extrinsic value of the ring to the couple that owns it may be the fact it has been handed down for generations in the groom's family (heirloom value.)

The intrinsic value of an internal audit is keeping the organization in focus and uncovering opportunities for improvement. The extrinsic value of the third party audit of the internal audit is confidence the process of internal audit conforms to an international standard or some other yardstick represented by the third party.