Which audit type is performed by a customer to verify supplier compliance?

The correct choice is associated with a second-party audit, which refers to an audit conducted by a customer (the buying organization) to assess and ensure that a supplier (the selling organization) adheres to specific compliance standards or requirements. This type of audit focuses on evaluating the supplier's processes, systems, and practices to confirm their effectiveness and alignment with contractual obligations, specifications, or quality assurance criteria set forth by the customer.

In this context, a customer engages in a second-party audit to verify that the supplier’s operations are compliant with the agreed-upon standards, providing confidence in the quality and reliability of the goods or services being procured. This process is essential in maintaining strong supplier relationships and ensuring the overall quality of the supply chain.

Internal audits, on the other hand, are conducted by an organization on its own processes; external audits are carried out by independent entities, and first-party audits refer to self-assessments performed by an organization itself. These types of audits do not directly involve the customer verifying supplier compliance, which is the key characteristic that highlights why second-party audits are specifically noted for this purpose.