Difference Between First Party and Third Party Audits in the Workplace

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Discover the key differences between first and third party audits, and how they help manage workplace hazards effectively. Ideal for safety professionals and NEBOSH learners.

Understanding audits in the workplace is essential to ensure safety, compliance, and continuous improvement. Among the types of audits commonly used in organizations, first party audits and third party audits stand out. These terms might sound technical, but they play a crucial role in keeping your workplace safe from hazards and compliant with legal standards. If you're working in an industry that deals with chemicals, machinery, or high-risk tasks, knowing the difference between these audits can help you spot gaps before they turn into disasters.

Before diving deep, let's briefly talk about training. Many safety professionals enhance their understanding of workplace hazards through certifications. One such popular qualification is the NEBOSH certification. While some professionals hesitate due to the NEBOSH course fees, it's worth noting that the investment can help unlock career opportunities and safeguard workplace practices.

What Is a First Party Audit?

A first party audit is basically an internal check. Imagine a restaurant inspecting its kitchen before a health inspector arrives. That’s a first party audit. It's conducted by the organization itself to assess its own safety practices, processes, and compliance with internal or regulatory standards.

This type of audit is usually performed by employees from within the company—often from the safety, quality, or compliance departments. They follow a checklist or guidelines to ensure all procedures are in place and followed properly.

Why Are First Party Audits Important?

These internal audits are a company’s first line of defense against workplace hazards. They help:

  • Identify safety gaps before someone gets hurt.

  • Ensure machinery and tools are well maintained.

  • Catch outdated practices or missing documents.

  • Prepare for external audits or inspections.

Example:
Let’s say a manufacturing unit performs a first party audit and finds that some workers aren’t wearing proper PPE (Personal Protective Equipment) in the welding area. This early identification allows the safety team to provide training and enforce rules before any injury occurs.

What Is a Third Party Audit?

Now let’s switch gears to third party audits. These are conducted by independent external bodies. The goal here is to provide an objective and impartial evaluation of the organization’s systems.

Third party audits are usually linked to certifications (like ISO or OHSAS standards) or legal compliance. Think of it like a car emissions test done by a certified government agency rather than your local mechanic.

Why Are Third Party Audits Valuable?

  • They offer unbiased assessments.

  • They boost an organization’s credibility.

  • They often lead to certifications that open business opportunities.

  • They help maintain compliance with legal standards.

Example:
A construction firm hires an independent safety auditor to inspect their high-rise project. The third party expert identifies that scaffolding platforms lack proper guardrails—something the internal team overlooked. The feedback prompts immediate corrective actions and helps avoid regulatory fines or potential accidents.

Key Differences Between First Party and Third Party Audits

Feature

First Party Audit

Third Party Audit

Conducted by

Internal staff

External independent body

Purpose

Self-check and continuous improvement

Certification or compliance validation

Bias level

Can be subjective

Highly objective

Cost

Lower (done in-house)

Higher (paid service)

Frequency

As needed

Often periodic or contractual

How Do These Audits Help Minimize Workplace Hazards?

Workplace hazards don’t appear overnight. They build up when small mistakes go unchecked. Both first and third party audits help catch these issues before they escalate. Here’s how:

  • First party audits allow organizations to regularly inspect and evaluate their procedures. Unsafe storage of chemicals or worn-out safety signs can be fixed immediately.

  • Third party audits provide professional insights and often bring fresh perspectives. These auditors might highlight industry best practices that an internal team could miss.

When Should You Use Each Type of Audit?

  • Use first party audits routinely—monthly, quarterly, or after a specific event like an accident or near miss.

  • Use third party audits for major milestones—when aiming for certifications, applying for contracts, or meeting legal requirements.

Both audits work best when used together as part of an active monitoring system.

Step-by-Step: Conducting a First Party Audit in Your Workplace

Step 1: Set Objectives

Decide what you want to achieve—safety, quality control, or compliance.

Step 2: Create a Checklist

Include items like PPE usage, machine condition, chemical handling, fire safety, etc.

Step 3: Assemble the Audit Team

Choose team members from relevant departments who are trained in audit procedures.

Step 4: Perform the Audit

Walk through the site, interview staff, and collect evidence.

Step 5: Record Observations

Document findings clearly. Include photos or videos if needed.

Step 6: Identify Non-Conformities

Highlight areas where current practices deviate from expected standards.

Step 7: Recommend Corrective Actions

Suggest practical improvements with realistic timelines.

Step 8: Follow-Up

Re-audit or check progress after a few weeks to ensure changes are implemented.

Step-by-Step: What to Expect During a Third Party Audit

Step 1: Choose a Certified Auditor

Look for credible agencies experienced in your industry.

Step 2: Prepare Documentation

Gather SOPs, training records, incident logs, risk assessments, etc.

Step 3: Conduct Pre-Audit Checks

Run a first party audit to catch issues beforehand.

Step 4: Facilitate the Audit

Accompany the auditor, answer questions, and provide access to sites.

Step 5: Review the Audit Report

Go through their findings in detail and ask for clarifications if needed.

Step 6: Implement Recommendations

Act swiftly on corrective actions to close any gaps.

Which One Should You Rely On More?

Honestly, both audits play vital roles. If you only rely on third party audits, you’re missing the day-to-day monitoring that keeps hazards in check. If you only do internal audits, you might overlook blind spots due to familiarity or bias.

By combining both, you build a safer, more reliable, and legally compliant workplace.

Real Life Insight: Don’t Wait for Trouble

Take the story of Faraz, a safety officer at a chemical plant in Lahore. His team conducted monthly first party audits, catching minor issues early. One day, they spotted corrosion on a high-pressure tank—a fixable issue. A few months later, during a third party audit, the auditor praised their diligence, noting that many plants overlook such details. This feedback boosted team morale and convinced senior management to invest more in safety training and tools.

These actions not only saved them from potential disaster but also elevated their industry reputation.

The Value of Safety Training and Planning Ahead

While we’re on the topic, it’s worth touching again on safety training. Many professionals hesitate to pursue advanced certifications due to the NEBOSH course fees. But think of it as a long-term investment. These qualifications equip you with the skills to lead audits, understand hazards, and implement safety systems with confidence. The knowledge gained often leads to better-paying roles and respected positions.

Read More: If you’re planning to invest in your future, it’s a good idea to explore what impacts the NEBOSH Fee in Pakistan, such as course duration, provider reputation, and additional support services.

Final Thoughts

In workplaces full of risks—from slippery floors to toxic fumes—proactive monitoring is key. Both first party audits and third party audits serve as essential tools to keep hazards at bay. First party audits help you monitor yourself before someone else does, while third party audits ensure you're truly meeting the required standards.

Whether you're a safety officer, business owner, or just starting your journey in workplace health and safety, understanding these audits—and using them together—is your best defense against costly errors and unsafe environments.

Empower yourself, train your teams, and always audit with purpose. Because in the end, safety isn’t just a requirement—it’s a responsibility.

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