Factory Audit Checklist: 25 Things Buyers Should Check

October 2026 · 8 min read · Factory Audit

Use this 25-point checklist on your next factory visit — or hand it to the auditor you hire. It is the same structure we use for our own audits in Guangdong.

Legal & commercial (1–5)

• 1. Business license matches the entity you are contracting with; scope covers your product.
• 2. License valid; no abnormal operations, warnings or deregistration records.
• 3. Export qualifications: customs registration, export license if required for the product.
• 4. Certificates (ISO 9001, BSCI, CE/UL test reports) valid and issued to this entity.
• 5. You can name the owner / general manager — the factory is a real operating business.

Production capacity (6–10)

• 6. Production lines actually running your category (not just a demo line).
• 7. Real monthly output vs. quoted MOQ and lead time — do the numbers add up?
• 8. Equipment: key machines present, maintained, and in use.
• 9. Tooling / molds owned by the factory (ask to see mold storage).
• 10. In-house vs. outsourced processes — which steps do they outsource, and to whom?

Quality system (11–17)

• 11. Dedicated QC team exists and is separate from production staff.
• 12. Incoming material inspection (IQC) actually happens and is documented.
• 13. In-process inspection (IPQC) checkpoints on the line.
• 14. Final inspection (FQC) and pre-shipment records kept for past orders.
• 15. Testing equipment on site: what is calibrated, and is the calibration current?
• 16. Defect tracking — do they know their top 3 defects from last month?
• 17. Complaint / corrective-action system exists for quality issues.

Social compliance & safety (18–22)

• 18. Overtime and wage records reasonable; no obvious forced-overtime pattern.
• 19. No child-labour risk: worker ID checks in place; ages plausible.
• 20. Fire safety: extinguishers, exits, evacuation routes actually present and clear.
• 21. Basic PPE (gloves, masks, guards) used where needed.
• 22. Working conditions: ventilation, lighting, welfare facilities acceptable.

Commercial red flags (23–25)

• 23. Price is significantly below the market average for the same product — ask why, and check the material spec.
• 24. Reluctance to show documents or the production floor; vague answers about ownership.
• 25. Payment terms unusually aggressive (e.g. demanding 100% before production from an unproven factory).

How to use this checklist

Score each item pass / partial / fail, photograph the evidence, and write a one-line note per item. That becomes your audit report. If you hire an auditor, insist the report contains photos for every key finding — not just a summary.

A full audit normally takes half a day to a full day. For first-time suppliers in a high-risk category, do not skip the production-floor walk: it is where the truth lives.