Re-audit Concerns: We have found instances were auditors are not citing important violations in order to cover up past auditor mistakes. THIS IS NOT ACCEPTABLE. All concerns/violations must be listed. If a concern is detected that was not found during previous audits, the auditor needs to contact the client rep to determine how to proceed. Auditor should not decide themselves what should be omitted. Failure to notify account rep will result in disciplinary action.
2. Client Shadow Audits: Please note that Costco Vice-Presidents and Buyers visit many factories in China. They even visit the factories we audit and conduct mini-audits themselves. Note that auditors have to be very careful in ensuring that they report everything and take sufficient pictures of the work floor and violations. Even though the factory may address some issues after the audit, the Costco reps should be able to see the same thing we see.
3. Recommending Re-Audits: Auditor should not inform the factories that they will need to undergo a re-audit. If a factory asks if a re-audit will be required, the auditor needs to ONLY say that the client will determine a re-audit.
4. ZT/UD follow-up audits: Should a re-audit be required of an audit that resulted in ZT/UD, the auditors must follow-up with facility management as to what happened with the incident. Auditors must also call account rep to determine any further information relating to such incident.
5. ZT/UD Notifications: Must be emailed immediately with details, documents, pictures. Make sure to CC both account reps (due to different time zones) so that one of them can report such issues to the client immediately. Report must be turned in 24 hours after audit.
6. Auditor Names on Report: All auditors should only write their first initial. And full last name on all Costco audit reports.
7. Reporting Bribes: Always report everything that occurs at the facility. DO NOT DECIDE WHAT YOU THINK YOU SHOULD BE REPORTED OR NOT. If the facility management offers you a gift/envelope/money, YOU MUST REPORT IT. You are setting a bad example for your partner should you fail to report such incidents. Always call the account rep when such incidents occur.
8. ZT/UD Reports: Must be written by the Lead Auditor/Higher Level Auditor
9. Child labor: Try not to mention Child labor findings until after child is interviewed and one auditor should accompany factory rep to work floor to look for child . We can also recommend the factory to check the website to verify the ID number but still need to do further work on verifying the ID holder as no picture shown in the website.
10. Auditor should ask the factory when the suspicion was found and get their explanation. Please make sure factory explanation is included in the report.
11. Exchange rate: Please use USD 1= RMB 8.02
12. Please use the following words in the Costco report: Factory to Facility (unless Factory is part of the factory name); Inspection to Audit; Inspector to Auditor; Consultant to Auditor.
13. Going forward, the recommended corrective actions should cite the exact law wording. If no law is cited, then provide best practice recommendation
14. Revised procedures/report to go into effect Mon, May 15. All auditors should make sure that they use 5/15/06 revised report, CTPAT, proceures, report writing guideline, grading matrix.. etc.
