
sourcing-guide
How to Read a Factory Audit Report (and Spot the Red Flags)
Sedex, BSCI, or your own audit? Knowing what to look for separates a reliable supplier from a costly one.
**1. Look at the audit type and scope.** Sedex SMETA is the most common for European buyers; BSCI is widely used in Germany; Walmart and Target typically require their own. A "social compliance" audit covers labour, while a "quality" audit covers production capability — they are not interchangeable.
**2. The findings table is where the truth lives.** Findings are graded Critical, Major, Minor, or Observation. One Critical finding means the factory should be rejected. Two or more Majors usually warrants a re-audit within 6 months.
**3. Common red flags we see:**
- Sub-contracting: the audited factory is just an office, production happens elsewhere.
- Ghost shifts: workers are brought in for the audit and sent home after.
- Phantom workers on payroll vs. actual head count on the line.
- No traceability: they can't tell you which batch a sample came from.
**4. Always cross-check the date.** An audit from 18 months ago is barely a starting point. Plan a re-audit every 12 months at minimum, or whenever there is a major process change.
At Sunbright, our most recent Sedex SMETA 4-Pillar audit (October 2024) is available under NDA. Our on-time delivery is 99.2% over the past 24 months.