In the last interview of our three-part podcast series, Patrick Gahagan, a Director in the Contract Compliance Audit Services (CCAS) practice, provides insights into the top 10 indicators that it’s time for a contract compliance audit.
Sometimes the greatest risks are those that go undetected over long periods of time. Organizations increasingly rely on multi-year contracts to manage critical business functions. Undetected non-compliance associated with these multi-year contracts is all too easy for organizations to overlook, and can quickly erode the organization’s earnings per share.
Contract compliance is much more than just ensuring contract terms and conditions are being met. An audit can uncover overpayments or under-reported revenue, unrecorded liabilities, and missed savings. These savings quickly add up to substantial margin enhancements.
Being aware of these top 10 risk indicators is paramount when deciding which contract to audit. There are a number of scenarios and indicators – either intentionally or unintentionally – that signal that it’s the right time to bring in an experienced auditor.