Your supplier sent a glossy catalog and a video of a production line. The price looks right. Before you wire a deposit, you want someone to stand on the factory floor and confirm it exists, runs, and can meet your order. That is the point of a factory audit in China.

What a factory audit actually checks

A factory audit is not a product inspection. It looks at the company behind the product. A standard audit covers:

  • Legal status: business license, registered address, ownership.
  • Production capacity: machines, lines, staff, shifts.
  • Quality control: incoming material checks, in-process QC, final inspection.
  • Certifications: ISO 9001, product-specific certificates, export licenses.
  • Working conditions: safety, wages, child labor (for social audits).
  • Subcontracting: whether parts or whole orders are outsourced.

You can audit a trading company too, but know what you are auditing. A trading company may not own a factory. That is not always bad, but you need to know who actually makes your product.

Decide the audit type first

| Audit type | What it focuses on | Best for | Typical length |
| Initial factory audit | Legal existence, capacity, equipment, QC basics | New supplier before first order | 1 day |
| Quality system audit | Documented procedures, records, corrective actions | Suppliers of critical components | 1-2 days |
| Social compliance audit | Labor, safety, environment, ethics | Brands with compliance requirements | 1-2 days |
| Production capability audit | Specific product line, capacity, lead times | High-volume or complex products | 1-2 days |
| Pre-shipment inspection | Finished goods quality and quantity | Before paying balance | 1 day |

Pre-shipment inspection is not a factory audit, but buyers often book them together.

Step 1: Write your own audit scope

Before you contact an auditor, write down what you need to know. A one-page brief works. Include:

  • Product and expected order volume.
  • Key machinery or processes that must be in-house.
  • Certifications you require.
  • Minimum staff or capacity.
  • Any red flags you want checked (e.g., dormitories, subcontracting, environmental permits).

If you skip this, you will get a generic report that says 'factory exists' and not much else.

Step 2: Choose who runs the audit

You have three realistic options:

  1. A large third-party inspection company (SGS, Bureau Veritas, TÜV, Intertek). Reliable, standardized reports, widely accepted. Cost is higher and scheduling can take longer.
  2. A local audit firm or independent auditor. More flexible, often cheaper, can go deeper into a specific product category. Quality varies, so ask for sample reports.
  3. Your sourcing agent or a local concierge team. They can combine the audit with supplier negotiation, sample collection, and follow-up. Good if you need someone to act on the findings.

| Option | Pros | Cons |
| Large third-party | Standard reports, global recognition | Higher cost, less flexibility |
| Local auditor | Cheaper, flexible, product-specific | Vetting needed |
| Sourcing agent | End-to-end follow-up, translation | May have supplier relationships to manage |

If your order value is small, a local auditor or agent is often enough. If you need a report for a bank, a customer, or a compliance team, use a recognized third-party.

Step 3: Contact the factory and set the date

Get the factory's full address in Chinese. Confirm the legal company name. Ask for a contact person, phone number, and WeChat. Send a short message explaining that an auditor will visit. Most factories accept audits, but some will stall. A delay is information.

Schedule the audit during working hours, ideally on a weekday when production is running. Avoid Chinese New Year, Golden Week, and local holidays. Ask the factory to have these documents ready:

  • Business license.
  • Export license or customs registration, if they export.
  • Certifications (ISO, product certificates).
  • Organization chart and staff count.
  • Production flow chart.
  • Equipment list.
  • Recent QC records.

Do not let the factory pay for the audit. The auditor should pay their own travel and expenses, and you pay the auditor directly. This keeps the report independent.

Step 4: Handle language and logistics

This is where many overseas buyers get stuck. The auditor needs to speak Chinese well enough to interview workers and read documents. If you use a non-Chinese-speaking auditor, book an interpreter. Do not rely on the factory's staff to translate.

Send the auditor the factory address in Chinese and the contact person's phone number. Ask them to confirm travel time from their location. Factories in industrial parks can be far from city centers. If you are auditing multiple suppliers, group them by city or industrial zone.

If you cannot travel, ask the auditor to take a short video walkthrough. A live video call during the audit lets you see the floor without flying to China.

Step 5: Read the report with a critical eye

A good audit report includes photos, document copies, and a clear conclusion. Look for:

  • Does the address on the business license match the factory you visited?
  • Are the machines and staff consistent with the claimed capacity?
  • Are QC records filled out by hand just before the audit? Check dates.
  • Does the factory subcontract key processes? Ask which ones.
  • Are there safety issues, blocked exits, or missing protective equipment?
  • Do workers seem informed or coached?

If something is unclear, ask follow-up questions. A report is a snapshot, not a guarantee. The goal is to decide whether to start a trial order, not to find a perfect factory.

Cost and timeline

| Item | Typical cost | Typical time |
| Auditor fee (local) | $200–$600 per day | 1–2 weeks lead time |
| Third-party audit | $300–$1,000+ per day | 2–4 weeks lead time |
| Interpreter | $100–$200 per day | Book with auditor |
| Report | Included | 2–5 business days after visit |
| Follow-up audit | Same as first audit | After corrective actions |

Total timeline from first contact to final report: usually 2–4 weeks. If you need a visa or travel, add more.

Common mistakes to avoid

  • Auditing a trading company without knowing who makes the product.
  • Using a factory-supplied 'audit report' or photos.
  • Not checking the business license address against the actual site.
  • Skipping the scope and accepting a generic report.
  • Booking an auditor who cannot read Chinese documents.
  • Paying the factory for the audit or letting them choose the auditor.
  • Ignoring subcontracting, which is common in China.
  • Not following up on corrective actions.

A note on unannounced audits

Some buyers want surprise audits. They can work, but they require a local team that can show up without warning. For a first audit, scheduled is normal. For ongoing production, a mix of scheduled and unannounced checks gives a better picture. If you go unannounced, make sure the auditor has the legal right to enter and a contact who can let them in.

When to bring in local help

If you do not speak Chinese, have no staff in China, and need someone to book the auditor, brief the factory, translate the report, and follow up on red flags, a local concierge team can handle that coordination. Globesino does this for overseas buyers who need sourcing, factory audits, inspections, and delivery without building a China office.