A Guide to Enforcing Audit Rights, the Next Third-Party Management Frontier: What to Do Before an Audit (Part One of Three)

While companies, recognizing the significance of third-party risk, have become increasingly sophisticated about vetting their business partners before an engagement, many still struggle with monitoring those relationships. Ongoing third-party management, including conducting regular third-party audits, is the next frontier in anti-corruption compliance. The Anti-Corruption Report’s three-part guide to enforcing audit rights is designed to meet companies where they are, helping them to tackle third-party audits while being mindful of the potential landmines inherent in the process. In this, the first article in the series, we discuss drafting third-party audit procedures and policies and outline seven steps a company should take prior to conducting an onsite audit of a third party. Upcoming installments of the series will discuss how to perform an onsite audit of a third party, address 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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