Risk Assurance & Advisory

Contract Compliance Audits

Corporations allow millions of dollars in revenue to slip away simply because they don’t perform contract compliance audits. These audits ensure that you have controls in place to monitor and receive all revenues that are due to your organization via predetermined legal agreements.

Our Approach

Independent Compliance Review

While it’s true that good partnerships are built on trust, it’s equally true that neglecting to establish effective controls and monitoring systems is the same as inviting your business partners and licensees to make their own calculations for your earned revenue. Under-reporting may be due to honest mistakes, vague revenue and cost-sharing definitions, differences in interpretation, manual system errors, and dozens of other possibilities given the complexity of most agreements.

But one thing is clear: To increase shareholder value, it’s up to you to make sure your business is compensated accurately from your contract relationships.  Armanino can provide an independent contract compliance review to identify issues with the accounting figures provided to you by public companies and your distributors, suppliers and other business partners.

Our contract compliance audit professionals employ a data analytics approach that handles terabytes of data. This efficient, investigative approach focuses on achieving bottom-line results and return on investment for our clients.

A contract compliance audit will also build loyalty among your suppliers who want reassurance that their competitors are not taking advantage of loose application of covenanted agreements. Our team is experienced in serving a wide variety of clients in areas such as royalties, licensing, distribution agreements, advertising, digital content and more.


Armanino’s contract compliance audit services include:

  • Distributor and reseller review  — Gain enforcement assistance for contracts with channel partners, including gray market issues, incentives, marketing funds, channel status, reporting, controls, etc. to ensure your organization is getting all the bottom line benefits it deserves.
  • Supplier and vendor contracts — Obtain reviews of pricing, invoicing, service level agreements, and billing processes related to other large expense areas such as technology outsourcing, contract labor, business equipment, shipping, telecom, etc.
  • Royalty compliance — Recover fees, help strengthen licensing relationships, resolve contract interpretation issues, comply with copyright law, and identify opportunities for mitigating risk.
  • Third-party portfolio risk assessment — Identify and prioritize risks related to business partner compliance. The results can help you move forward more strategically in your compliance efforts.
  • Software end-user license review — Monitor license compliance for software vendors, leading to increased current and future licensing and maintenance revenue.
  • Ad agency contract compliance audits — Identify significant cost recoveries or other improvement opportunities to proactively monitor media placements.
  • Franchise compliance — Achieve franchisee conformity with compliance issues, including royalty payments, operations and marketing charges.
  • Software asset management (SAM) — Reconcile the software an organization has licensed, deployed, and in use to reduce IT costs and limit legal and operational risks.
  • Joint venture & profit participation — Examine joint venture financial statements, profit calculations and distribution data for proper financial distribution.
  • Construction contract compliance — Review prime and sub-contractor fees, labor charges, materials, change orders, mark-ups, project controls, etc.

Kevin Guy - Risk Assurance & Advisory
Managing Director
Kevin has experience in third party compliance, internal audit, process redesign, finance, and operations improvement.

Dallas, TX
Amber O'Malley, Risk Assurance & Advisory - San Francisco
Amber has over a decade of experience in risk management, including extensive Big Four experience.

San Francisco, CA
Chris Spartz - Risk Assurance & Advisory| Armanino
An experienced consultant with a track record of working in complex global environments.

Dallas, TX
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