Contract Compliance Audit Definition
A contract compliance audit is an examination of a company’s compliance with the terms of its contracts. The audit may be performed by the company itself or by an external auditor. The purpose of the audit is to ensure that the company is adhering to the terms of its contracts and to identify any areas where it may be non-compliant.
The audit process typically begins with a review of the contract documents themselves. The auditors will then assess how well the company is complying with the terms of the contract and will identify any areas where there may be room for improvement. They will also interview employees and managers to get their perspectives on compliance and to identify any potential red flags. Finally, they will prepare a report detailing their findings and recommendations.
