Are your audit clauses fit for purpose? Do they support the collection of appropriate and meaningful audit data form your suppliers? A comprehensive well-defined audit clause is crucial if your organisation intends to monitor supplier compliance to contract terms and conditions and facilitate the identification of potential noncompliance issues.

 

Audit clauses need to be drafted with sufficient particularity to the individual circumstances of an agreement. A vague audit clause may well not be enforceable. Amongst other things, parties should be clear about the specific rights being granted, to what and why.

 

We provide independent assessments related to the suitability of current or newly drafted audit clauses and will assess the accuracy and availability of suitable data within the third party and client organisations’ systems. We work with client and 3rd party to define audit clause and  the specific input systems, reports and other data repositories will ensure speedy and definitive reviews going forward.