Who typically engages in a first-party audit?

A first-party audit is conducted by an organization to evaluate its own internal processes, systems, and performance against established standards or criteria. This type of audit is focused on the company's own operations and seeks to identify areas for improvement, ensure compliance with internal policies, and enhance overall quality.

The company being audited is deeply familiar with its processes, which allows for a thorough assessment of practices in relation to set goals or quality standards. This level of engagement encourages self-assessment and accountability, ultimately aiding in the continuous improvement of the organization’s performance.

Contrasting this with the other options, an external regulatory agency typically conducts compliance audits, while a third-party organization is involved in third-party audits, serving as an outside entity to provide an impartial evaluation. A customer may conduct an audit as part of a supply chain review, but this is more reflective of a second-party audit rather than a first-party audit, where the organization examines its own systems.