SMETA Audit Process: Step-by-Step Guide to What Happens Before, During and After a Sedex Audit

The SMETA audit process follows a series of steps. You log in to Sedex, complete your self-assessment, hire an approved audit company, undergo the on-site audit, agree on a corrective action plan, and close all findings through follow-up actions.

The problem for most suppliers is not that of the actual audit but the one following the final meeting because the report, CAPR and deadline hit you like a ton of bricks.

Here at Legal4sure, we have worked with many factories which undergo this process repeatedly and our observation has been consistent. Suppliers who fully know the process of Sedex audit and everything that comes after it are able to close their findings quickly and keep their buyers satisfied.

What Is the SMETA Audit Process?

The process of SMETA audit India consists of steps performed by an independent auditor during the assessment of the labour standards, health and safety and, depending on the type of SMETA audit (4-Pillar), the environment and business ethics. This process starts from the Sedex registration and ends with an audit report and CAPR.

SMETA means Sedex Members Ethical Trade Audit and is an audit methodology, but not a certification. You won’t get a certificate, and you’ll have neither a pass nor fail mark.

In general, you’ll be measured against ETI Base Code and local legislation, all your deficiencies will be recorded as findings, and buyers will use this report to assess the risk of the supplier – that is why this process goes far beyond the day of the audit.

There are two types of this audit: 2-Pillar audit includes Labour Standards and Health & Safety, and some other aspects including management system and right to work, and 4-Pillar audit – Environment and Business Ethics as well.

The SMETA Audit Process, Step by Step

Here’s the Sedex audit process in the order it actually happens.

Step 1: Register on Sedex and Complete the SAQ

Before the audit can be performed, your company will need to register its Sedex account. After registering, you will complete the Self-Assessment Questionnaire (SAQ). The SAQ includes information regarding the number of employees, work hours, policy and risk areas.

The auditor will review your SAQ before their visit. When the answers in the SAQ differ from your payroll and attendance records, expect questions during day one.

Step 2: Link Your Buyer and Confirm the Scope

Connect your site to the buyer requesting the audit. Then confirm three things:

• Pillars: 2-Pillar or 4-Pillar
• Audit type: Announced, Semi-Announced or Unannounced
• If the buying company expects the audit report to be shared with them in Sedex

Get these in writing. Scope misunderstandings are one of the most common reasons audits get rebooked.

Step 3: Selection of Affiliate Audit Company

SMETA audits can only be conducted by affiliate audit companies of Sedex. You agree on the number of auditor days based on your employee strength and the number of pillars covered.

Afterwards, you provide pre-audit documents, including plant layout diagram, total number of employees, shifts and all subcontractors’ details.

Step 4: Opening Meeting and Walkthrough

An opening meeting is the first stage of a SMETA audit, where the auditor provides details regarding the scope of the audit, auditing methodology, and confidentiality of worker interviews.

After that, the production area, cafeteria, chemical storage, fire exits, and workers’ housing area are toured. In the 4-Pillar audit, the auditor also evaluates the waste disposal and effluent management system.

Step 5: Document Review and Interviews

This is the core of the audit. The auditor cross-checks records against what workers and managers say. Typical documents include:

• Employee payroll, attendance, and overtime records
• Employment agreements and age documentation
• Certificates of fire safety, drills, and training
• Discrimination, discipline, and grievance policies

Worker interviews carry real weight. They verify what the paperwork claims, so consistency between the two matters more than a polished file.

Step 6: Closing Meeting

The auditor presents the findings and a draft CAPR. You can clarify points and offer evidence. The goal is to agree to corrective actions and deadlines before the team leaves.

The table below summarises who does what at each stage.

Stage	What happens	Output
Registration and SAQ	Site joins Sedex and completes the self-assessment	Completed SAQ
Scoping and booking	Pillars, audit type and auditor days are agreed	Confirmed audit booking
On-site audit	Tour, document review, worker and management interviews	Auditor’s findings
Closing meeting	Findings discussed and corrective actions agreed	Draft CAPR
Reporting	Report and CAPR finalised and uploaded to Sedex	Audit report and CAPR
Follow-up	Evidence submitted and verified	Closed or open findings

 

What Happens After a SMETA Audit?

Once the SMETA audit is completed, the auditor compiles the final audit report and CAPR, and uploads the reports on Sedex when the site gives its permission to do so. Once this is done, buyers get access to these results. The findings are processed one at a time, and evidence is uploaded and verified by the auditor.

In practice, the sequence runs like this:

1. The auditor prepares the report and finalizes the CAPR.
2. Your site requests, via Sedex, for the audit firm to upload these documents.
3. Buyers linked to you have access to the report based on your permission settings.
4. Your team undertakes the actions within the set timelines.
5. The evidence is submitted to the auditor who checks the action status.
6. A repeat audit is conducted when your buyer needs one based on their audit cycle.

Because SMETA has no pass or fail result, buyers judge you on two things: the severity of your findings and how quickly you close them.

SMETA Audit Report: What’s Inside

The SMETA audit report is the auditor’s written record of the visit. It typically includes:

• Audit site information, audit scope, and pillars examined
• Summary of findings for each pillar
• Individual findings of non-compliance, along with supporting evidence
• Comments about best practices observed by the auditor
• Declaration by the auditor about SMETA compliance of the audit

Read it closely before you approve the upload. If you disagree with a finding, raise it with the audit company early.

What Is a CAPR in a SMETA Audit?

The Corrective Action Plan Report (CAPR) details all non-conformities noted in a SMETA audit, what correction your site will commit to undertake, its owner, completion deadline, and verification by the auditor. The CAPR is agreed upon at the end of the meeting and communicated through Sedex.

The CAPR is basically the contract for your site with respect to the audit. Each non-conformity has an entry of its own, which includes the following:

• Noncompliance and the evidence thereof
• Corrective actions to be taken by your site
• Person responsible for compliance
• Time frame
• Method of verification and status

The default CAPR timeframe spans from immediate correction to 365 days. Critical problems, like a fire exit that is closed off, require quick attention. Problems that necessitate an overhaul of systems, like rethinking a compensation structure, receive longer timeframes.

The objective of an auditor is not just that a problem be corrected; it must be sustained. Let’s look at the following two examples:

Finding	Weak corrective action	Strong corrective action
Overtime above the legal limit	We will reduce overtime.	Revise shift roster, set a weekly overtime cap, track through attendance data, review monthly with HR.
Blocked fire exit	Exit cleared.	Exit cleared, floor marked, daily supervisor checklist added, staff retrained and drill recorded.
Missing training records	Records will be updated.	Training matrix created, past sessions documented, a named owner assigned for ongoing records.

 

SMETA Audit Follow-Up and Corrective Action Process

The task of the follow-up and correction process of the SMETA audit is one-fold: to confirm that the issue has been rectified. For every CAPR line, determine the root cause of the issue, implement the fix, and provide evidence.

The auditor then verifies it in one of two ways.

Factor	Desktop review	Follow-up audit
How it works	Auditor reviews documents and photos remotely	Auditor revisits the site
Best for	Policy updates, training records, certificates	Wages, working hours, physical safety fixes
Evidence	Uploaded files	On-site observation and interviews
Cost	Usually lower	Charged by the audit company, often per day

 

Changes to wages and working hours normally need a site visit, because records alone rarely prove the change holds. Choose the method with your auditor at the closing meeting so you can budget for it.

How Long Does the SMETA Audit Process Take?

There’s no single number, because each stage depends on your readiness. As a rough guide:

• Preparation: dependent on how organized your record keeping is. Begin a few weeks before hand.
• Audit time: usually one to three days for most factories, depending on manpower and pillars.
• Submission & uploading: dependent on the audit company, enquire in writing of its turn around time.
• Closing time: determined by your CAPR, anywhere from immediately to 365 days.

Buyers also expect repeat audits, commonly every year or two. Closing findings properly the first time makes the next cycle much lighter.

Common Mistakes in the Sedex Audit Process

• Treat the audit process as a single-day affair without considering the CAPR dates.
• Submit SAQ that does not reflect payroll and attendance records.
• Provide corrective actions that are vague without specifying the owner and evidence.
• Coaching the employees prior to the interviews since auditors detect this easily.
• Accept the CAPR timeline that is impossible for you to achieve.
• Not responding within the follow-up period.

Quick Pre-Audit Checklist

Run through this a few weeks before your audit date:

• The Sedex account and SAQ have been verified against actual data
• Pillar numbers, audit type, and auditor number of days have been cross-checked with the buyer
• Payroll, attendance, and contractual documents are available
• Fire safety, first aid, and chemicals storage verified physically
• Interview process has been explained to management
• A specific owner available to run the CAPR program

Key Takeaways

• The SMETA audit cycle involves Sedex membership, SAQ, on-site audit, and report, CAPR and follow-up.
• As SMETA audit methodology does not involve a certification process, there will be no pass or fail status.
• Each finding, solution agreed upon, owner, deadline, and method of verification are mentioned in the CAPR.
• Follow-up may occur through desk top assessment or site visit and correction to wages and working hours requires a site visit.
• Effective correction is based on solving the root cause of the issue.

Conclusion

The SMETA audit process that is run well does not just stop there. It is the report, the CAPR, and the follow-up that will determine how your site is viewed by the buyer at the next audit round.

Make sure you prepare your documentation in advance, set realistic timelines, and each CAPR item is treated like a project with its own owner. Legal4sure helps suppliers in all of these areas, from registration in Sedex to closing down the last finding.