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DISCUSSIONS > IIA GENERAL DISCUSSION AREA [ REFRESH ]
Thread Title: Supplier Financial Stability Audits
Created On Tuesday November 13, 2012 4:50 PM
  Supplier Financial Stability Audits
  Supplier Financial Stability Audits


musashi44


Posts: 260
Joined: Jul 2005

Tuesday November 13, 2012 4:50 PM

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The Controller asked me if I had any audit programs that would cover supplier financial stability reviews. Help! I don't but hope some of you might???? If so, can you send to mnrog@hotmail.com.

I already told her I would:

!. check Dun & Bradstreet,
2. Perform financial ratio analysis...

Any other advise or audit programs?

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Paul_M


Posts: 91
Joined: Apr 2003

Wednesday November 14, 2012 2:30 PM

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The IIA published a Practice Guide on Auditing External Business Relationships in May 2009 that may be helpful.

Do a LexisNexis search for news about the vendor and its owners/senior management.

Some other things I would request from the vendor:
- Three-year financial background, including audited financial statements
- What % of the vendor’s sales is with your company
- Does the vendor rely on a small number of key contracts
- Vendor’s conflict of interest policy
- Adequacy of vendor’s insurance coverage

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DISCUSSIONS > IIA GENERAL DISCUSSION AREA [ REFRESH ]
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