Audit: An audit is a systematic and independent examination of the management system, processes, and records to determine whether they comply with specific requirements (e.g., ISM Code or ISO 9001 standards). It scrutinizes objective evidence to determine the suitability, conformity, and effectiveness of an organization's quality or Safety Management System (SMS). Audits primarily focus on assessing the effectiveness of the SMS and verifying compliance with established procedures.

Survey: A survey is an inspection or examination of the ship, its equipment, and its condition to ensure compliance with safety standards, regulations, and classification requirements. The purpose of a survey is to verify that the ship meets a minimum technical standard complying with current regulations and that daily work is characterized by safe work and a safety culture. Surveys are conducted by classification societies or Recognized Organizations (ROs) to verify that vessels are seaworthy and meet regulatory requirements for safety, pollution prevention, and operational performance.

(i) When there is evidence of a major non-conformity (NC):

• The R.O. will suspend the Safety Management Certificate (SMC) and notify the Flag Administration.
• The company must submit a corrective action (C.A.) plan within a specified period, typically within 3 days.
• A follow-up verification audit will be conducted to assess the effectiveness of the corrective action before reinstating the SMC.

(ii) When non-conformities are found:

• For minor NCs, the R.O. issues a Non-Conformity Report (NCR) and requires implementation of corrective actions within a defined period (usually 90 days).
• For major NCs, the SMC may be suspended until corrective actions are verified.
• A follow-up audit is scheduled to verify compliance and the successful implementation of corrective actions.

(iii) When an extension of the SMC is requested:

• The R.O. assesses the current status of the Safety Management System (SMS) for compliance with ISM Code requirements.
• If necessary, an audit or inspection is conducted to confirm continued compliance and effectiveness.
• Upon satisfaction, a formal extension of the SMC is issued, indicating a new validity period.

(iv) When revision of an entry in the certificate is requested:

• The R.O. reviews the revision request to ensure it meets ISM Code requirements.
• A verification audit may be required if significant changes are involved.
• Upon approval, a revised SMC is issued, and the previous certificate is revoked.

The Safety Management Certificate (SMC) and Document of Compliance (DOC) may be invalidated under the following circumstances:

• Major Nonconformities identified.
• Failure to address Nonconformities.
• Changes in Ownership or Management.
• Non-Compliance with the ISM Code.
• Inadequate Resources or Support.
• Deliberate Misrepresentation.
• Corrective actions not taken within the specified time period.
• Periodical Verification not conducted or carried out.
• Renewal Assessment missing or not completed.
• Failure to resolve existing Major Nonconformities.
• Cancellation requested by the DOC holder.
• Substantial modifications or major changes to the ship's operation not communicated or rectified.