Vendor Audit Services
Energy and natural resource companies have outsourced business processes to cut costs, create efficiencies or remove noncore functions. These relationships with third-party service providers and vendors usually are governed by contracts. But no matter how good your internal controls are in the areas of vendor management and payment processing, you are still at risk for significant losses.
According to the Institute for Supply Management, each Fortune 100 company has more than 20,000 contracts. BKD’s detailed review of your contracts can identify potential cost recoveries and highlight areas of contractual noncompliance. Our vendor audit services, which include service level agreement (SLA) audits, construction audits, joint venture audits and vendor contract audits, can address these concerns and help give you peace of mind.
Of the more than $14 billion in vendor contracts BKD has audited for energy and natural resource clients with international operations, the firm has identified more than $275 million in agreed-upon monetary claims. The best part: More than 90 percent of vendor audits pay for themselves by identifying compliance and invoicing issues, including critical contractual risks that can lead to duplicate payments, incorrect billing rates and other errors.
A Holistic Approach
BKD’s vendor audit approach is extensive and disciplined. Audits in this area often focus on cost recovery, but BKD professionals go the extra mile to identify root causes, process inefficiencies or control breakdowns. Our team:
- Scrutinizes more than mere contractual compliance
- Assesses your entire “Procure to Pay” cycle
- Identifies breakdowns related to each claim
- Provides guidance on how to improve internal processes and avoid noncompliance
- Works directly with vendors to remedy erroneous billings
- Offers continuous auditing and data analytics services
Learn more about how BKD’s vendor audit services team serves clients in other industries.