A "right-to-audit" clause:
A)provide rights to the vendor to audit the company's books at any time.
B)gives an external auditor the right to audit the company's books.
C)should not be used because it isn't an effective tool in fraud investigation.
D)alerts vendors that the company reserves the right to audit the vendor's books at any time.

Question

Quizplus · Accepted Answer

A "right-to-audit" clause alerts vendors that the company reserves the right to audit the vendor's books at any time. This can help deter fraudulent activity and ensure compliance with contractual obligations. It does not provide the vendor with the right to audit the company's books, nor does it rely solely on external auditors for investigation.

A "Right-To-Audit" Clause