First-party, second-party, and third-party audit

Audit Parties
Audit Parties

3.16 first-party audit

verification tool that is implemented by an economic operator (3.9) to assess progress of compliance with the principles and objectives, and/or traceability schemes (3.39) on its own practices and activities, and is conducted by an internal auditor

Note 1 to entry: First-party audits are simpler than second-party audits (3.32) and third-party audits (3.38), as the sample of interviewed people and processes tends to be smaller, which reduces the administrative burden (e.g. non-disclosure agreements, contracts, rigid audit schedule) and therefore the verification costs. First-party audits and associated compliance claims (3.5) are also considered less robust than third-party audits as they are not performed by independent auditors.

3.32 second-party audit

verification tool that is implemented by an economic operator (3.9) seeking to assess progress of compliance by its supplier(s) with the principles and objectives, and/or traceability schemes (3.39) relating to secondary metals (3.33) resulting from the concerned value chains (3.41)

Note 1 to entry: Second-party audits and associated claims (3.5) are generally seen as less robust than third-party audits (3.38), due to potential conflicts of interest between an economic operator and its suppliers and/or customers.

3.38 third-party audit

verification tool that is implemented by an independent organization (i.e. assurance providers such as certification bodies) that assesses whether an economic operator (3.9) complies with the principles and objectives, and/or traceability schemes (3.39) it committed to comply with

Note 1 to entry: Third-party audits are generally accepted as the most robust type of assurance system (3.2).

Source: ISO/IWA 19:2017, Guidance principles for the sustainable management of secondary metals

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