A Guide to Enforcing Audit Rights, the Next Third-Party Management Frontier: Conducting an Onsite Audit (Part Two of Three)

To protect themselves from anti-corruption violations caused by third-party partners, more and more companies are including audit rights in their third-party contracts. Those rights, however, are useless – and even potentially dangerous – if a company does not regularly enforce them. The Anti-Corruption Report’s three-part guide to enforcing audit rights is designed to assist companies in building and implementing effective third-party audit policies and procedures. The first article in the series discussed drafting the company’s policy and outlined six additional steps a company should take prior to conducting any onsite audits of third parties. This article lays out a plan for conducting the actual onsite audits, including 10 specific areas the audit should address. The third article in the series will tackle some of the challenges companies will face while auditing and outline measures companies should take after an audit is complete. See “EY’s Rick Sibery Outlines a Seven-Step Process for Monitoring Third Parties” (Oct. 20, 2016).

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