Contract Auditing: Maximizing Value And Minimizing Risk

Introduction:

Contracts are the backbone of business relationships, but they can also be a source of risk if not managed effectively. This comprehensive training course on Contract Auditing equips participants with the specialized knowledge and skills to audit contracts, ensuring compliance and maximizing value for money. Participants will learn how to review contract terms, identify potential risks, assess vendor performance, and ensure adherence to contractual obligations. This course bridges the gap between legal agreements and audit practices, empowering participants to become valuable assets in protecting their organizations' interests and optimizing contract outcomes.

Target Audience:

This course is designed for professionals involved in contract management, procurement, and auditing, including:

• Internal Auditors
• Contract Managers
• Procurement Professionals
• Legal Counsel
• Finance Professionals
• Anyone involved in managing or overseeing contracts

Course Objectives:

Upon completion of this Contract Auditing training course, participants will be able to:

• Understand the key elements of a contract and their implications.
• Review and interpret contract terms and conditions.
• Identify potential risks and areas of non-compliance within contracts.
• Develop and execute contract audit plans.
• Assess vendor performance against contractual obligations.
• Evaluate contract costs and pricing for value for money.
• Ensure compliance with relevant regulations and legal requirements.
• Identify opportunities for contract optimization and cost savings.
• Communicate contract audit findings effectively to stakeholders.
• Improve contract management practices within their organizations.
• Stay up-to-date with best practices in contract auditing.
• Contribute to stronger contract governance and risk management.
• Enhance their understanding of contract law and negotiation.
• Become a more valuable and sought-after contract audit professional.
• Understand how to audit different types of contracts (e.g., service agreements, procurement contracts, IT contracts).

DURATION

5 Days

COURSE CONTENT

Module 1: Introduction to Contract Auditing

• The importance of contract auditing in managing risk and maximizing value.
• Key contract terms and their implications (e.g., payment terms, deliverables, warranties, liabilities).
• The contract lifecycle and the role of audit at each stage.
• Types of contract audits (e.g., compliance audits, performance audits, financial audits).
• Ethical considerations in contract auditing.

Module 2: Contract Review and Interpretation

• Understanding contract language and legal terminology.
• Analyzing contract clauses and identifying potential ambiguities.
• Interpreting contract terms in the context of business objectives.
• Identifying key performance indicators (KPIs) and metrics.
• Reviewing contract amendments and change orders.

Module 3: Identifying Contract Risks and Non-Compliance

• Identifying potential risks associated with contracts (e.g., financial risk, performance risk, legal risk, reputational risk).
• Analyzing contract compliance requirements and identifying potential gaps.
• Understanding relevant regulations and legal requirements.
• Assessing the impact of non-compliance.
• Developing risk mitigation strategies.

Module 4: Developing a Contract Audit Plan

• Defining the scope and objectives of the contract audit.
• Identifying key audit areas and procedures.
• Developing audit checklists and questionnaires.
• Planning the audit timeline and resources.
• Communicating the audit plan to stakeholders.

Module 5: Executing the Contract Audit

• Gathering and analyzing audit evidence.
• Conducting interviews with key personnel.
• Reviewing contract documentation and records.
• Testing vendor performance against contractual obligations.
• Documenting audit findings and observations.

Module 6: Assessing Vendor Performance

• Evaluating vendor performance against KPIs and metrics.
• Analyzing vendor invoices and payment records.
• Assessing the quality of goods and services delivered.
• Identifying performance gaps and areas for improvement.
• Managing vendor relationships.

Module 7: Evaluating Contract Costs and Pricing

• Analyzing contract costs and pricing structures.
• Assessing value for money and cost-effectiveness.
• Identifying opportunities for cost savings and price negotiations.
• Benchmarking contract costs against industry standards.
• Auditing contract expenditures and payments.

Module 8: Reporting Contract Audit Findings

• Developing clear and concise audit reports.
• Communicating audit findings to stakeholders.
• Providing actionable recommendations for improvement.
• Following up on audit recommendations and implementation.
• Presenting audit findings effectively to different audiences.

Module 9: Contract Management Best Practices

• Improving contract management processes and procedures.
• Implementing contract management software and tools.
• Developing contract management policies and guidelines.
• Training employees on contract management best practices.
• Integrating contract auditing with overall risk management.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 5 working days before commencement of the training.