Auditing third parties is critical to any best practices compliance program and an important tool in operationalizing your compliance program. This is a key manner in which a company can manage the third-party relationship after the contract is signed and which the government will expect you to engage in going forward. As stated in the 2020 Update, under the section entitled, Management of Relationships, is the following query: Does the company have audit rights to analyze the books and accounts of third parties and has the company exercised those rights in the past? This means you must not only have audit rights but also exercise them.
Three key takeaways:
1. Be prepared.
2. It is not an investigative interview but an audit interview.
3. Listen, listen, and listen.
