Third Party Risks and Internal Auditors

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1 Response

  1. greg says:

    Above you write: “Rights of the internal auditor or a designated representative to conduct an audit of the third party’s books….Some [companies], however, are resisting the audit rights by trying to restrict the right to transactions between the parties. That is not acceptable.” Why do you feel this “is not acceptable”? Maybe this could be subject of a follow-up post?

    As compliance professionals companies with thousands of suppliers and many suppliers that do object to the audit clause, compliance professionals often accept limitations to the audit clause so that our companies may only examine the suppliers’ books and records as they pertain to our companies. Are you suggesting this approach is not prudent?