Contract Auditing - Training - The Institute of Internal Auditors (IIA)
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Contract Auditing

Your opportunity to...
  • Identify the different sources of contract law, and related requirements when dealing with certain types of contracts.
  • Analyze the different parts of a contract, from the basic components to more complex provisions.
  • Plan an audit of contracts, from start to finish.
  • Develop tools for optimizing audit sampling as it relates to selecting contracts for review.
  • Perform tests of controls and substantive tests when performing an audit of contracts, and optimize the reporting of significant findings to management.
Calling all...
  • Audit staff preparing to engage in a contract audit.
  • Audit managers planning to perform an audit of contracts.
  • Chief Audit Executives interested in developing a meaningful audit of contracts within their organization.
  • Non-audit managers interested in enhancing their understanding of contracts.
Course Description

Prerequisites: None
Advanced Preparation: None
Delivery Method: Group-Live

This is your opportunity to gain a comprehensive understanding of contract law, and how to audit contracts. If you are interested in planning an effective audit of various contracts within your organization, this course is for you. Those attending will be exposed the four legal requirements necessary to form a contract, then expand to advanced areas of contract law and auditing.

The course was designed by one of the few licensed attorneys who is also a Certified Internal Auditor, and noted lecturer. The class will start with contract basics, and expand into complex areas of contract provisions. This session includes an exciting mix of lecture, group discussion, breakout sessions, and complex problem solving.

Course Outline
Sources of Contract Law
  • List out the various sources of contract law
  • Define those sources
  • Compare and contrast the law of different jurisdictions
  • Identify the purpose of contracts and their role in reducing organizational risk
  • Perform meaningful exercises to enhance participant understanding
Contract Components
  • Expound upon the four parts to a contract
  • Learn what constitutes offer and acceptance
  • Define consideration
  • Review the numerous issues when dealing with capacity
  • Identify Illegal provisions which render contracts void
Planning the Audit of Contracts
  • Review effective audit planning steps
  • Performing a walkthrough
  • Flowcharting the process
  • Integrating contract valuation into the planning process
  • Perform an exercise illustrating planning steps
Selecting Audit Samples of Contracts
  • Select a representative sample
  • Sampling strategies and techniques
  • Risks in limiting audit scope
  • Testing beyond the selected sample
Performing Control and Substantive Tests
  • Itemize tests of controls
  • Itemize substantive tests
  • Discuss issues of materiality when performing audit steps
  • Exercise using examples of control and substantive tests
High Impact Reporting
  • Assess various audit outcomes
  • Prioritize audit findings
  • High Impact Reports
  • Corrective Action
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