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DISCUSSIONS > IIA GENERAL DISCUSSION AREA [ REFRESH ]
Thread Title: Right to Audit Clause
Created On Tuesday May 03, 2005 3:15 PM
  Right to Audit Clause
  Right to Audit Clause
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  Right to Audit Clause
  Right to Audit Clause
  Right to Audit Clause


Merv


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Tuesday May 03, 2005 3:15 PM

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Does anyone have a sample right to audit clause for contracts and agrrements

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Crash


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Tuesday May 03, 2005 3:29 PM

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We pay you. We get to look at anything you do to support what you do for us as frequently as we want. You will bill us in detail and we will audit that detail. All audit requests will go through Joe, Title at your company. All discrepancies will be deducted from the current bill until resolved.

There are some more sophisticated ones, but the points are all the same - what are you doing, how often will you do it, how will you do it, who will you work with to do it, and what will we do with the findings (penalties, timing, trades, etc). Sometimes, you can even make them pay for it!!!

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Do the right things for the right reasons.

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bigkell


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Wednesday May 04, 2005 9:11 AM

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Crash knows !

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Shaneliz


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Wednesday May 04, 2005 9:34 AM

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<<Company>> reserves the right to perform an audit of all books and records of <<Vendor>> as they may relate to the performance of this Agreement at any time. <<Vendor>> shall maintain accurate records at all times. Upon three days notice,<<Vendor>> shall provide <<Company>> reasonable access to <<Vendor's>> records to verify conformance to the terms of this Agreement. <<Company>> shall be permitted to conduct these audits with any or all its own internal resources or by securing the services of a third party acccounting/auditing firm, solely at <<Company's>> election. <<Company>> shall have the right to copy, at its own expense, any record realted to the services performed pursuant to this agreement.

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MahCons


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Wednesday May 04, 2005 7:54 PM

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That's pretty comprehensive; however, you might wish to add: <<Vendor>> will retain all documentation supporting claims/invoices under this contract for a period of <<number>> years after receipt of the final payment under this contract.

That way, if the buyer Company finds an anomoly (or becomes suspicious) in this vendor's billing practices, the buyer Company can audit past contracts, as well as the one with the problem. Generally, a supplier that overbills once -- has a track record that just wasn't caught, before.

Also, extending the requirement to retain source documents allows better audit/staffing planning.

By the way, don't forget to add terms and conditions allowing the buyer Company to take action as a result of the audit ...like recoup (or not pay) money that the audit concludes was overbilled.
Linda

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Linda
Mahnke Consulting

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Sarbanesone


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Friday September 11, 2009 8:41 AM

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Thank you everyone who posted to this thread. It was very helpful for me!

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MR CIA, CFE, MBA

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DISCUSSIONS > IIA GENERAL DISCUSSION AREA [ REFRESH ]
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