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Auditing Contracts: Auditing that Pays!

Course Description

Print-friendly Course Description and Outline

Contracts and contracting are a way of life for most large organizations. Organizations are relying on third parties more than ever in areas such as consulting, technology, real estate, security, maintenance, construction, joint ventures, benefits administration and advertising. Many organizations have found their controls over contracting activity and contractor payments have not been sufficient to protect them from erroneous billing and performance problems.

This course explores the challenges contracting presents and how auditors can help management address those challenges in today's world. Some well-established contract audit functions recover more than the cost of the entire audit department by identifying overcharges, performance issues and revenues not collected. Perhaps even more important are the lessons learned that lead to improvement in contract management practices.

Course Duration: 2 day(s)
CPE Hours Available: 16
Knowledge Level: Basic
Field of Study: Auditing
Prerequisites: 
​None
Advance Preparation: 
​None
Delivery Format: On-site Training (Group-Live)

​ 

​Introduction to Auditing Contracts

  • Assessing contract audit practices
  • Common problems in contracting and barriers to auditing contracts

Developing an Understanding of Contract Exposures and Opportunities

  • Understanding the contract audit environment
  • Key elements of the contracting process
  • Contract components – what and why
  • Exposures in contracting
  • Contract audit findings

Fundamentals of Contract Auditing

  • Contract audit objectives and strategy
  • Deciding what to audit
  • Audit planning
  • Checklist for development of a contract audit program

Approaches to Auditing Costs

  • Defining costs
  • Common cost exceptions and how to find them
  • Case studies in auditing costs

Best Practices

  • Tools and procedures
  • Leveraging technology in contract auditing
  • Optimizing recovery

Fraud Implications of Contract Auditing

  • Fraud exposures in contracting
  • Applying the five-step approach to fraud detection
  • Ten items to include in your fraud policy

Contracting and the Current Culture

  • The implications of our current business environment
  • Why controls over contracts break down
  • Gifts and entertainment related to contracting

Challenges and Suggestions for Selected Areas

  • Technology contracts
  • Consulting, maintenance, research, and development
  • Revenue and sales contracts

Wrap Up

  • Key learning points
  • Putting ideas into action

​Most courses can be delivered through on-site training. You might be surprised that the organization leading the profession is just as committed to the delivery of affordable training.

Contact us by calling +1-407-937-1388 or send an e-mail to GetTraining@theiia.org.