Process for Performing a Vendor/Contract Audit: What Should be Considered and How to Plan, Perform and Report Results of a Vendor Audit

Conducting vendor or contract audits demands a specific skill set for comprehending the contractual terms and conditions between a company and an external vendor responsible for outsourced products or services. The initial phase of shaping audit objectives and procedures involves grasping the inherent risks associated with these contracts. The central focus of these audits revolves around evaluating the vendor's activities within the contract. Notably, a substantial portion of the audit fieldwork is typically conducted at the vendor's office, offering a significant advantage to the auditor.

Attend this webinar to learn about the different contract terms, different ways to determine the scope of the audit given contract terms and conditions, and how to plan, perform, and report the results of a vendor audit.

With an increased focus on outsourcing services within organizations, awareness of contract terms and conditions and how to audit them are invaluable to organizations. Taking a proactive stance on performing vendor audits on contracts can result in real dollar savings to organizations, not to mention invaluable comfort to Management that outside vendors are performing in accordance with the terms and conditions of given contracts. This course will provide you with a basic understanding of different contract terms, different ways to determine the scope of the audit given contract terms and conditions, and how to plan, perform, and report the results of a vendor audit. Examples of templates will be provided for every step of the audit process.

This course will spend some time discussing different contract terms and the risks associated with them, for example, "Cost-Plus", "Fixed Fee/Lump sum" and "Time and Materials". We will discuss the proper breakdown in time spent on a typical vendor audit and where the focus of that effort should lie. Examples of real-life vendor audit issues and how they were discovered and resolved will be shared. Additionally, we will discuss an example of an audit program, vendor confirmation letter, and contract brief. From start to finish, the vendor audit can result in real dollar savings for your organization and should be an area of focus for any organization with significant contracts with outside vendors.

To understand how to perform vendor/contract audits and start to finish instructions and templates on how to perform this type of audit given the risks involved in contracts.

• Identify and collect essential pre-audit background information
• A basic understanding of the most popular types of contract terms and conditions
• The process of reviewing contracts to develop audit objectives
• Turning audit objectives into audit steps and an audit program - Audit Planning
• Reviewing the contract and putting together a "Contract Brief"
• Fieldwork performed at the vendor's office - critical advantage to auditors
• How to successfully identify and plan the vendor audit report to provide results to both management and the vendor.
• Real-life examples will be shared from the instructors' extensive background in this area.

• Internal audit personnel involved in performing the annual risk assessment
• Internal audit management interested in performing a risk assessment
• Professionals responsible for performing risk assessment duties
• Risk/compliance officers from any industry