Factory Audit Checklist: What Auditors Actually Check
Last updated: 2026-08-31
Quick answer
A factory audit checks four things: whether the company is what it claims to be, whether it can make your product consistently, whether it treats its workers and the environment within the standard you named, and whether its records support its answers. Auditors do this by walking the floor, reading records and interviewing staff, then grading every finding by severity.
Definition
A factory audit is an on-site assessment of a supplier against a stated standard or checklist. The auditor reviews documents, walks the production floor, interviews employees and management, and issues a written report with findings graded by severity and a corrective action plan. Audits are usually described by their standard: quality (ISO 9001), social compliance (BSCI, SMETA, SA8000, WRAP), or a buyer's own proprietary checklist.
Key points
- · Audit findings are graded, not pass or fail. Your organisation decides what it will accept.
- · Records matter as much as the floor. An auditor who cannot see a record will write it down as missing.
- · Employee interviews are the part suppliers prepare least well, and they surface the issues records hide.
- · The corrective action plan is the deliverable that actually changes anything. The report without one is a photograph.
- · A re-audit is the only way to know whether corrective actions were completed or just promised.
Step by step
- 1. Open with scope and entity
Confirm which legal entity and which building is in scope, who owns the site, and what is made there. Larger groups sometimes show the newest plant and ship from an older one.
- 2. Review documentation
Business licence, factory operating permit, quality manual, calibration records, incoming inspection records, production records, non-conformance logs, training records, and the certificates you were shown during verification.
- 3. Walk the floor
Raw material storage, incoming inspection, production lines, in-process checks, finished goods, packing, warehousing, and the laboratory or testing area. Note housekeeping, equipment condition and whether the process on the wall matches the process on the line.
- 4. Interview staff
Where the standard requires it, interviews happen away from the production floor and away from management. Working hours, wage records, recruitment fees and overtime are the areas where findings concentrate.
- 5. Grade findings and agree corrective actions
Findings are graded by severity, discussed at a closing meeting, and written up with owners and target dates. Critical findings usually require action before the next order ships.
Examples
A minor finding on paper, and a major one in practice: every assembly built with an out-of-calibration tool has an unverified torque value. The corrective action was recalibration plus a 100% recheck of the last production batch.
Three weeks of inspection records with the same measurements and the same signature. The auditor recorded the finding as records not maintained in practice, which is a quality system failure rather than a paperwork one.
Wage records and contracts were in order, but interviews showed workers had paid a fee to an agent to get the job. This is a critical finding under most social compliance standards and requires repayment.
The main plant passed cleanly. A walk through the packing area revealed cartons from a second site that had never been disclosed. The audit scope was extended and the second site failed.
Checklist
- ☐ Business licence and factory operating permit for the audited site
- ☐ Quality manual and documented procedures
- ☐ Equipment list with calibration certificates in date
- ☐ Incoming material inspection records
- ☐ In-process and final inspection records
- ☐ Non-conformance logs and corrective action records
- ☐ Training records for operators and inspectors
- ☐ Certificates and test reports matching the contracted entity
- ☐ Working hour and wage records for the audit period
- ☐ Employment contracts and recruitment fee evidence
- ☐ Health and safety records, fire equipment inspection and evacuation drills
- ☐ Environmental permits and waste disposal records where applicable
Frequently asked questions
What is the difference between a factory audit and an inspection?
An audit assesses the supplier's system: how it controls quality, how it manages compliance, whether its records are real. An inspection checks a specific shipment: quantity, workmanship, packing and specification against your order. Audits are scheduled before or between orders; inspections happen before shipment.
How many man-days does an audit need?
A single-site quality audit usually starts at one man-day. A full social compliance audit such as SMETA typically needs two or more, scaled by headcount. Large sites with multiple buildings need more time regardless of the standard.
Do you issue the certificate?
No. Assessment and certification are different activities performed by different bodies. We assess and report. If you need a certificate, our report tells you what still needs fixing before a certification body is likely to issue one.
What happens after a critical finding?
The supplier commits to a corrective action with a target date. Most buyers then require a re-audit or documented evidence that the action was completed before the next order ships. A critical finding with no follow-up is not a closed finding.
Sources
- ISO 9001 quality management systems standardThe reference framework for most quality audits, including documented procedures and internal audit requirements.
- amfori BSCI and Sedex SMETA audit methodologiesThe reference frameworks for social compliance audits, including interview protocols and finding grading.
- IATF 16949 and VDA 6.3Automotive-specific frameworks used for process audits in Thailand and other automotive manufacturing bases.
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