The Truth about Contract Compliance Audits: Webinar with the Sourcing Industry Group [Webinar]
October 19, 2016
With today’s rising competitive and cost-cutting pressures, many organizations are fully embracing the power of periodic contract compliance audits of third parties. After all, a well-executed audit can help executives to increase transparency, improve communication and processes, strengthen internal controls, and mitigate third party risks. And, they typically recover 2-4 percent of the transaction values audited.
However, according to a recent Aberdeen Group Research report, some companies are holding back. The reason: widespread misconceptions regarding audit requirements and results.
In this webinar recording presented by Jeff Klima and Tyson Gischel, we explore why and when companies are executing contract compliance audits, as well as the following seven key myths associated with this strategy:
- Auditing a supplier will harm the relationship
- An audit will disrupt supplier operations
- Audits require significant time and support from company stakeholders
- Audits can be performed only if the contract contains an audit clause
- Most billing errors are the result of intentional fraud
- Resolving audit findings requires legal action
- Audits must be performed by third-party auditors
By overcoming these myths and implementing a contract compliance audit program, senior executives are mitigating third-party risks and enhancing transparency, efficiency, communication, and savings—all of which allow them to realize their short- and long-term objectives.
To find out when it might be time for you to realize the benefits of an audit, read our whitepaper, “The Top Ten Indicators That It’s Time For A Contract Compliance Audit” here.
To learn more about how a contract compliance audit can help your organization mitigate risk and achieve supplier transparency, efficiency, and savings, contact SC&H Group’s Contract Compliance Audit practice here.