What Happens If You Fail an ISO Audit? (What Companies Should Expect)

One of the biggest fears business owners have is:

• What if we fail ISO audit?

• Will we lose certification?

• Can we still apply for tender?

• Is failing ISO serious?

The good news:

👉 Failing an ISO audit does NOT mean the end.

In fact, many companies receive non-conformities during audit.
What matters is how you respond.

Let’s break it down clearly.

1️⃣ Do Companies Really “Fail” ISO Audit?

Technically, ISO audits don’t use the word “fail” like an exam.

Instead, auditors issue:

• Minor Non-Conformity (Minor NC)

• Major Non-Conformity (Major NC)

• Observations / Opportunities for Improvement

Certification depends on how serious the findings are.

2️⃣ What Happens If You Receive Minor Non-Conformity?

This is very common.

Examples:

• Incomplete documentation

• Missing signature

• Record not updated

What happens next?

✔ You submit corrective action plan
✔ You fix the issue within timeline (usually 30–60 days)
✔ Certification can still proceed

Minor NC does NOT usually stop certification.

3️⃣ What Happens If You Receive Major Non-Conformity?

Major NC is more serious.

Examples:

• No evidence of internal audit

• No management review conducted

• Core ISO requirement not implemented

• System not actually followed

In this case:

❌ Certification is temporarily withheld
✔ You must correct the issue
✔ Auditor may conduct follow-up audit

Once corrective action is verified, certification can proceed.

4️⃣ Will You Lose ISO Certificate If You Fail Surveillance Audit?

If you already have ISO and fail a surveillance audit:

• You are given time to correct the issue

• If not corrected, certification may be suspended

• If still unresolved, it may be withdrawn

However, most companies fix issues before suspension.

Losing ISO entirely is rare — unless the system is not maintained at all.

5️⃣ Can You Still Apply for Tender If You Fail?

It depends.

If:

• Certification is not yet issued → You cannot claim ISO-certified

• Certification is suspended → You cannot use ISO status

That’s why proper ISO training and internal audit preparation are critical.

6️⃣ Why Do Companies Fail ISO Audit?

Common reasons include:

• Treating ISO as paperwork only

• No real implementation

• Poor internal auditor training

• No management involvement

• Last-minute preparation

ISO is a management system — not just documents.

If the system is genuinely implemented, audit is usually smooth.

7️⃣ How to Reduce Risk of Failing ISO Audit?

Before certification audit:

✔ Conduct proper internal audit
✔ Perform management review
✔ Close all internal non-conformities
✔ Train internal auditors properly
✔ Ensure documentation matches practice

Many failures happen because companies rush for certification.

Preparation reduces risk significantly.

Final Answer: What Happens If You Fail ISO Audit?

✔ Minor issues → Fix and proceed
✔ Major issues → Correct and re-audit
✔ Rarely permanent failure

ISO audit is designed to improve your system — not punish your company.

The key is preparation and proper training.

FAQ (Frequently Asked Questions)

1. Can a company completely fail ISO audit?

Yes, if major non-conformities are not corrected, certification may be withheld.

2. What is the difference between minor and major non-conformity?

Minor issues are small documentation gaps; major issues involve core system failure.

3. How long do we have to correct ISO audit findings?

Usually 30–60 days, depending on certification body.

4. Does failing ISO affect tender application?

If certification is not issued or suspended, you cannot claim ISO status.

5. How can we avoid failing ISO audit?

Proper implementation, internal audit training, and management commitment are key.