Auditors can also obtain feedback from the organization’s stakeholders about their suppliers as another source of input
The list of items to be audited can be discussed and reviewed with the supplier several days before the audit
Auditors should plan to verify the supplier’s responses with objective evidence during the audit
How do you prepare a vendor audit checklist?
Know those going into your audit
Build a team: Create an audit team with a manager and members from departments that work with each vendor
With their shared knowledge and experience, they can develop the checklist
Vendor risk is a real concern for many businesses
Don't let yourself get caught off guard
What is a vendor audit?
A vendor audit is performed for a company that aims to attain an objective assessment of its contractors’ or vendors’ compliance to the terms, conditions and intent of the contracts and/or agreements between two entities
Vendor audits are necessary to effectively reduce cost and improve quality control throughout the procure-to-pay system
Recovery auditing is the systematic process of reviewing disbursement transactions and the related supporting data to identify and recover various forms of over payments and under-deductions to suppliers. In other words, it is the recovery of lost money.
Auditing vendors
Supplier of goods or services
In a supply chain, a vendor, supplier, provider or a seller, is an enterprise that contributes goods or services. Generally, a supply chain vendor manufactures inventory/stock items and sells them to the next link in the chain. Today, these terms refer to a supplier of any goods or service.
A vendor management system (VMS) is an Internet-enabled, often Web-based application that acts as a mechanism for business to manage and procure staffing services – temporary, and, in some cases, permanent placement services – as well as outside contract or contingent labor. Typical features of a VMS application include order distribution, consolidated billing and significant enhancements in reporting capability that outperforms manual systems and processes.
Recovery auditing is the systematic process of reviewing disbursement transactions and the related supporting data to identify and recover various forms of over payments and under-deductions to suppliers. In other words, it is the recovery of lost money.
In a supply chain
Supplier of goods or services
In a supply chain, a vendor, supplier, provider or a seller, is an enterprise that contributes goods or services. Generally, a supply chain vendor manufactures inventory/stock items and sells them to the next link in the chain. Today, these terms refer to a supplier of any goods or service.
A vendor management system (VMS) is an Internet-enabled, often Web-based application that acts as a mechanism for business to manage and procure staffing services – temporary, and, in some cases, permanent placement services – as well as outside contract or contingent labor. Typical features of a VMS application include order distribution, consolidated billing and significant enhancements in reporting capability that outperforms manual systems and processes.
