Guidelines for Performing a Vendor Audit with an emphasis on Construction Audit
OVERVIEW Vendor/Contract audits require a certain skill set to understand the terms and conditions of a contract between a Company and any given vendor where products or services are outsourced. Understanding the risks that are inherent within them is the first step in developing audit objectives and steps. The primary focus of the audit is the vendor (third party) activities pertinent to a contract. A majority of the fieldwork on these types of audits will likely be performed at the Vendor’s office and this is a significant advantage to the auditor. This course will spend some time discussing different contract terms and the risks associated with them, for example “Cost-Plus”, “Fixed Fee/Lump sum” and “Time and Materials”. We will discuss the proper breakdown in time spent on a typical vendor audit and where the focus of that effort should lie. Examples of real-life vendor audit issues and how they were discovered and resolved will be shared. Additionally, we will dis...