A compliance audit is a comprehensive review of an organization's adherence to regulatory guidelines. Often the initial reaction from companies is vendor audits are expensive, difficult to conduct, excessively time-consuming and have an adverse impact on the efficiency of the organization. But negative media reports, long drawn-out and costly legal battles, loss of faith and confidence by customers, loss of major contracts, and large amount of monies leaking from the company are some of the commercial realities.

A well-designed vendor management assessment and management process, incorporating vendor audits, can be efficient, cost-effective and enhance the quality of the organization’s operation in the field of Statutory Compliance.

• Develop greater transparency, accountability, and trust with key suppliers.
• Verify accuracy of data reported by suppliers.
• Make them to understand the risk of noncompliance under.
• Establish more productive supplier relationships.
• Strengthen contract language, improve financial terms, and enhance internal controls.
• Identify noncompliance area to improve the progress in the Statutory Obligation as per the State Values.

Many of the establishments couldn’t focus on the vital area which is the vendor/contractor Management assessment and the area where most.