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Contract Compliance Services

Contract Compliance Services

Forensic helps member firm clients identify potential financial misreporting and establish the compliance baseline underpinning relationships.

Forensic helps member firm clients identify potential financial misreporting and establish

Why it is important

An agreement with a licensee or advertising agency often contains complex remuneration calculations. A company cannot always monitor whether the counterparty has correctly reported its expenditures, sales, or services. Moreover, the counterparty may intentionally manipulate such data to its advantage and to the detriment of the company.

How we can help

We check that the contractor provides the company with accurate and complete information on the indicators that will be used when calculating the compensation amount under the contract. We also ensure that the contractor fulfills other conditions – that it fully provides requested services, adheres to the agreed schedule, etc.

What we do

  • We examine the contract, highlighting the key conditions and basic components of the remuneration calculation.
  • We request from the contractor and check supporting documentation for indicators based on which the payment amount is calculated: sales, direct and overhead expenses, time spent by employees, etc.
  • If the contract involves subcontractors, we compare the prices of their services to the market level and ensure that their expenses are properly accounted for in the final settlement with the client.
  • We check that all contract conditions have been executed and that the execution is backed up by the necessary documents: statements, invoices, photo and video reports, etc.
  • We recalculate the compensation amount to ensure that the client receives all outstanding payments (and not does overpay himself).
  • If there are any errors or violations, we calculate the level of damage to the client and make recommendations on how to prevent such incidents from reoccurring in the future.

What you get

  • Understanding whether the counterparty has in fact fulfilled all contract conditions.
  • The calculation of compensation under the contract, which is easy to understand and verify.
  • Compensation for damages caused through fraud or error on the part of the counterparty (typically 6-10 times the cost of the audit).
  • The prevention of future violations by the contractor.

Connect with us

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