Contract Compliance Audit

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Global organizations transact business with thousands of active suppliers with one or more complex contracts, the volume and complexity present significant challenges. This makes monitoring of compliance to the applicable terms and conditions difficult.

A contract compliance audit is a task performed to monitor contracts and is normally based on a detailed review of supplier contracts. It involves line-level billing data and supporting information to ensure that the way the contract terms were originally articulated remains accurate and helps to improve supplier performance of any future contracts.

Depending on the type of contract, it can be straightforward or extremely complex, however, even the most routine contracts can be more complex than expected.  

Contract Compliance Audits are increasingly considered to be the best practice for internal controls. Generally the clients devote significant amounts of time and effort when negotiating complex supplier contracts and commonly there’s an assumption when a contract in place that all negotiated benefits and requested services are automatically received and honoured, however internal and supplier errors, misunderstanding and lack of oversight of the agreed terms means the value and services promised are often underdelivered.  

With offices in China and England, personalized service, effective communication and prompt recoveries can be expected every time. 

Our Contract Compliance approach begins with clear communication of the review process and discussion of client's AP spend data and contracts. 

The risk assessment process is the backbone of a contract compliance program. Risk Assessment focuses on the spend volume and complexity of each category, to produce a prioritized supplier shortlist.

At the outset, we work with the client project sponsor and contract management teams with the view of understanding our client’s needs. RCCA UK will then discuss the suppliers shortlist taking into account any operational concerns, contract renewal negotiations, the supplier relationship and buying power to complete the supplier’s selection stage to start a customized Contract Compliance Audit.

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