Find out how third-party auditing can provide greater security, legal compliance and efficiency in your sourcing chain.
Currently, outsourcing services has gained more and more space in the market, helping companies to reduce costs and increase competitiveness.
However, despite its advantages, this approach also presents challenges. The need for inspection, time and attendance control and compliance with regulations are just a few examples that we can mention.
Therefore, carrying out a third-party audit becomes essential to ensure the success of this practice.
Third-party auditing is an indispensable tool for companies that seek operational excellence and the quality of services provided by external suppliers and partners.
In this article, we'll explore the importance of this approach and the benefits it brings to both contracting organizations and the outsourcers themselves.
In addition, we will understand how third-party auditing can boost security and efficiency in outsourcing processes, ensuring compliance and reducing legal risks.
Here you will find:
What to evaluate in a third-party audit?
How to evaluate contracts during third-party audit?
What documents to ask for in a third-party audit?
How does technology facilitate third-party auditing?
Simplify your third-party audit with BMS Integration!
>>Read also: Legal impacts of the lack of management of service providers
What is a third party audit?
Third-party auditing is a management tool that seeks to impartially assess the efficiency, quality, compliance and performance of suppliers and service providers contracted by a company.
Its objective is to identify possible risks that the contracted company may offer. In this sense, it covers aspects such as compliance with labor and social security legislation, financial issues, among others.
When carrying out third-party audits, the contracting company seeks to ensure that service providers are in compliance with all legal requirements and, above all, that they follow the rules of corporate governance.
In this way, the audit seeks to avoid possible legal risks for the contracting company and, consequently, reduce headaches during the execution of the services.
What to evaluate in a third-party audit?
Several points are thoroughly evaluated in the third-party audit to ensure that suppliers and providers meet desired standards and comply with applicable rules and regulations.
In the following, we highlight the main points evaluated
Legal and Regulatory Compliance
The audit verifies that third parties are in compliance with labor, social security, tax and environmental laws.
In addition, it checks whether they meet other industry-specific regulatory requirements.
This is essential to avoid legal risks and potential negative impacts on the contracting company's reputation.
Corporate governance
The assessment aims to verify whether the third party has adequate structures for internal control, ethics, transparency and corporate responsibility.
These aspects are essential to establish a relationship of trust and ensure a solid and lasting partnership.
Quality of Services Provided
Evaluates the quality of the services delivered by the third party, ensuring that they are in line with the standards established by the contracting company.
This analysis includes reviewing contracts, SLAs (Service Level Agreements), performance indicators and customer feedback.
Technical and Operational Capacity
It verifies that the third party has the technical capacity, qualified human resources and adequate infrastructure to provide the contracted services efficiently and effectively.
>> Read also: Third Party Management: what is it and what are the benefits?
How to evaluate contracts during third-party audit?
The purpose of the contract audit is to ensure that all existing or newly started contracts comply with the company's legal and security requirements.
The contracts establish the foundations of the relationship between the contracting company and the service providers, stipulating the rights, obligations and responsibilities of both parties.
In this sense, the audit must carry out the analysis in order to verify possible contractual failures, and, if applicable, propose corrections.
At this stage, several aspects must be carefully evaluated. This ensures that the contract is transparent, fair and capable of mitigating potential risks.
Main Aspects Evaluated in Contracts
Purpose and Scope of the Contract
The audit verifies that the object of the contract is clearly defined, detailing the services that will be provided by the third party. As well as the scope of activities to be carried out.
This ensures that both parties understand exactly what is being agreed upon.
Deadlines and Duration
It is essential to analyze contract terms, automatic renewal clauses, as well as conditions for early termination.
This assessment allows the contracting company to have control over the commitments assumed and to plan its operations more effectively.
Responsibilities and Obligations of the Parties
The audit verifies that the responsibilities and obligations of both parties are clearly established.
In this way, future conflicts are avoided and it ensures that all those involved fulfill their contractual responsibilities.
Commercial and Financial Conditions
The analysis of commercial conditions, such as prices, payment methods, readjustments and penalties, is crucial to guarantee the economic viability of the contract and avoid possible financial imbalances.
Confidentiality and Data Protection
It is essential to verify that the contract establishes confidentiality and data protection clauses. Especially when sensitive or strategic information is shared between the parties.
Conflict Resolution Mechanisms
The audit analyzes the mechanisms provided for in the contract for resolving possible conflicts, such as mediation, conciliation or arbitration, thus seeking to guarantee quick and efficient solutions in the event of disputes.
Review and Update Clauses
It is important to check whether the contract provides for periodic review and update clauses, allowing for adjustments in line with market developments and the needs of the parties involved.
What documents to ask for in a third-party audit?
When performing the third-party audit, it is important to request and review a series of relevant documents to ensure compliance, security and transparency of operations involving third-party service providers.
This is necessary to ensure that the contracting company is protected against risks and potential problems that may arise in the relationship with third parties.
It is important to emphasize that the list of required documents may vary according to the company's sector of activity, the type of outsourced services and the applicable legislation.
Some of the documents that may be required include:
- Contracts and Agreements: Obtain copies of all contracts and agreements signed between the contracting company and third parties, including any amendments and amendments.
- Identification documents: Verify the identity of third parties, requesting copies of documents such as CNPJ/CPF, RG, and proof of address, work card, ASO (Occupational Health Certificate), NRs of the contracted activity, among others.
- Labor Records: Check third-party employee records, such as employment contracts, payrolls, working hours and benefits.
- Machines and vehicles: check whether the inspection, maintenance, CRLV, etc. reports are up to date.
- Internal Policies and Procedures: Requiring the presentation of internal policies and procedures of third parties, such as manuals of conduct and safety standards.
- Certifications and Licenses: Ensure that third parties have the necessary certifications and licenses to carry out their activities, especially in regulated sectors.
- Risk assessment: Request documents that show how third parties assess and manage risks related to their activities.
- Liability insurance: Check whether third parties have civil liability insurance to cover any damage caused during the provision of services.
>> Read also: Document Management: what it is and how technology can help you
How technology facilitates third-party auditing
Analisar os principais pontos de uma auditoria de terceiros, pode parecer confuso e complicado à primeira vista. Com tantos documentos para analisar, é comum ficarmos perdidos e sem saber como proceder.
In this sense, technology can play a facilitating role in this process.
Currently, there are several third-party Management software on the market that have the function of organizing these documents and simplifying the analysis by managers.
A well-developed system transforms a process that would require time and manual work into a fast, accurate and automated task.
After scanning and storing the documents, you can consult the current status of your outsourced processes at any time.
In addition, there is no need to analyze and look for wrong or expired documents, nor worry about physical storage spaces.
With a third-party management software, you can check the current situation of your outsourced processes in real time.
This allows business decisions to be informed by the operation of third parties. In addition, the audit of these documents makes it possible to identify possible threats of a labor nature or of any other nature, which also speeds up the taking of actions by the contracting company.
Simplify your third-party audit with BMS Integration.
Thinking about streamlining your company's processes and guaranteeing differentiated results, BMS Tecnologia developed the BMS Integração, a complete system for integration and management of third parties and collaborators.
As BMS Integração, third-party management will become more efficient and accurate, reducing audit issues and eliminating issues related to incorrect and expired documentation.
Developed with a focus on efficiency, the BMS Integração provides a series of essential resources and benefits to optimize the management of third parties in your company.
From registration to integration, you will get absolute control of processes, alerts, standardization of procedures and data security, all online 100%.
O BMS Integração is a reliable digital security system, free of flawed documentation and overdue integrations, offering absolute control remotely.
With it, you will have quick management, unification of documentation in blocks, standardization between units and reduction of problems with auditing.
In addition, it enables fast and effective communication!
Don't waste any more time with complex audit processes. Simplify third-party management with BMS Integration and ensure efficient results for your company!
Talk to one of our specialists and find out what BMS integration can do for your company!
