Contract Risk and Compliance Services

Contracts in today’s business environment contain complex terms and conditions.  It is critically important to have a process in place to provide assurance that your business partners are in compliance with these negotiated contract terms and conditions, and are performing in accordance with your designed expectations.  Our Contract Risk and Compliance Services provide our Clients with valuable transparency into their contractual arrangements, comfort that contract terms are being adhered to, and identification of opportunities to recover any financial leakage resulting from non-compliance.  Our efforts and the information provided can be leveraged in subsequent contract negotiations; providing benefits into perpetuity.

Our experience and detailed knowledge of contract structures allow us to tailor each project to meet the needs of our Clients, and deliver results.  Typically, each project will include at least one of the following types of reviews.
    
Supplier Contract Reviews

Supplier Contract Reviews offer the opportunity to gain insight into control weaknesses as well as identify opportunities to recover lost profits.  Through detailed testing of the transactional detail that supports the supplier’s invoices, our reviews provide our clients with transparency into the business relationship.  Additionally, we identify all overcharge/cost recovery opportunities and provide practical recommendations for strengthening the contract, processes and/or controls moving forward.  

Revenue Assurance Reviews

Revenue Assurance Reviews involve reviewing our Clients’ contractual arrangements with customers and related internal processes to identify control weaknesses related to the revenue process, and to identify opportunities to recover unrealized revenues.  Specific areas of review include, but are not limited to: invoice preparation, sales discounts & allowances, commissions, royalties, franchise fees, inventory shrinkage, returns, credits, and sales tax & VAT compliance.  

The results of each of our reviews are documented in a manner tailored to our Clients’ needs (e.g. narrative, flowcharts, action plans, board level reports, and/or a combination of formats) and include the identification of recovery opportunities and practical recommendations to improve processes and controls.

Our areas of expertise include:

• Recovering Financial Leakage
• Improving Oversight & Controls
• Increasing Transparency into Business Relationships
• Providing Assurance that Business Partners Adhere to Negotiated Contract Terms
• Identification of Verbal Agreements that Circumvent Executed Contracts
• Testing for Supplier Compliance with Operational Requirements to Reduce Business Risk (Supply Chain, Safeguarding of Information/Data, Prohibitions Against Gifts, Unauthorized Use of Trademarks/Logos, Reputational, Physical/IT Security, Etc.)