Fraud not only is an internal threat, but many common fraud schemes involve an organization’s payments to vendors with such payments representing the largest outlays of cash for most organizations.
These common fraud schemes include corruption, conflicts of interest and billing schemes in addition to issues of vendor overbilling and quality of goods or services provided. One of the ways to mitigate the risks of these fraud schemes is to establish a contractual right-to-audit clause in vendor contracts.
Vendor audits are a component of an effective, risk-based compliance program and help ensure the organization is not a victim of fraud providing deterrence, detection and prevention of corruption, conflicts of interest and other fraud schemes.
We can assist you by performing vendor audits as requested or by developing a vendor audit program. Vendor audits not only help in the deterrence, prevention and detection of fraud but also can result in cost recovery from contractual issues.
