A contract audit is a systematic review of contract compliance, performance, and value capture. It can be conducted internally as a periodic review, or by external firms specializing in AP recovery, supplier audits, or compliance certification.
What contract audits find
Overpayments (invoices priced above contract), unclaimed rebates and entitlements, missed price protection, un-drawn MDF balances, and non-compliance with pricing, delivery, or service terms. Recovery-oriented audits routinely find 1-3% of spend in year-one deployments.
The continuous alternative
Contract performance management with continuous reconciliation reduces the need for after-the-fact audit recovery, because the underlying issues get caught in real time.
