Correct Answer - Option 3 : Both 1 and 2
There are two types of Audit:
1) Internal Audit: It is an examination of the quality system within the organization and is also called as First Party Audit. This audit is carried out by the supplier on its own system to evaluate its quality performance and check if the Quality Management System are effectively implemented. An internal audit is carried out to check if the product conforms to technical specifications and It provides a control mechanism for the management and helps to apply corrective action for non-conformities.
2) External Audit: The external audit is classified as a Second party Audit and Third-party Audit.
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Second Party Audit: This audit is conducted by one organization over another that has contracted to buy goods and services and its purpose is to provide the purchasing organization confidence in the supplier's ability to provide goods and services according to the agreed quality standards.
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Third-Party Audit: These are conducted by an organisation on a Quality system neither under its direct control nor within its organizational structure and it has no interest in the outcome of the audit. This is carried out by recognized certification agencies.