Vendor Audit

 

The effective management, use and monitoring of vendors for goods and services is critical to the success of every business. We support our customers with vendor audits to help ensure processes are sufficiently designed to minimize risk of billing errors, service quality or fraud, and to identify potential overbillings for recovery.

Stinnett performs two types of vendor audits for our clients:

Targeted Vendor Audits

These audits start with a comparison of selected detailed invoices to the agreement and approved rate sheets to confirm charges are legitimate and accurate. Typical vendor audits also include an onsite visit to the vendor’s site to perform activities such as:

  • A review of vendor expense records for potential ethics issues like inappropriate gifts or trips
  • An analysis of the vendor’s cash disbursement journal for payments to the company or the company’s employees
  • A review of the vendor’s accounts receivables entries for “no charge” or deeply discounted services
  • A review of the vendor check register and/or bank statements to determine if any payments were made directly to company employees

We believe in identifying the root cause or contributing factors for any identified vendor issues. That’s why our vendor audits include recommendations that can help reduce the risk exposure to similar future issues occurring.

Vendor Management Review

These reviews concentrate on policies and procedures designed to manage vendors.

Examples include:

  • Vendor contract management: Approval, storage and monitoring of vendor contracts and other key vendor agreements and communications.
  • Vetting and approval of vendors: Verification of vendor credentials and ownership, bidding and award procedures (where applicable), and detection of restricted vendors that are applying to the company under another name or ownership.
  • Accounts Payable Vendor Master File management: Access to the AP vendor Masterfile, procedures for adding and inactivating vendors, monitoring of vendor master file activity and periodic purging or inactivation of vendors no longer in use.