Supplier audits during COVID-19 : a process perspective on their transformation and implications for the future

Purpose: Audits are an essential part of supply chain management, whether they be of a single supplier's facilities or the whole supply chain. Before the COVID-19 pandemic, auditors mainly conducted supplier audits in-person and on-site. Subsequent travel restrictions have meant that auditors have had to perform these audits remotely. The purpose of this paper is to conceptually describe the emerging phenomenon of remote audits and explore the implications of this change for the future. Design/methodology/approach: This exploratory research used qualitative interviews with key stakeholders (firms, auditors and regulators) to provide an empirical basis for the study. A total of 60 interviews were conducted in two rounds with 40 respondents from 26 organizations. A process perspective lens was used to explore the fundamental changes in supplier audits. Findings: The study provides an interpretative conceptual framework of remote supplier audits grounded in key factors (audit process, use of technologies, document and record sharing) and identifies a set of contingency factors (technological sophistication, reputation for integrity, maturity of internal audit processes, and level of complexities and risk involved) that affect the effectiveness of remote audits. Originality/value: Remote supplier audits have radically changed how supply chains operate. This paper presents the first empirically-grounded study on remote auditing. It provides a springboard for future research in this domain and practical implications for managers to assist them with the development of remote auditing in their firms and supply chains.