Discussion » Questions » Business » Would YOU sign a contract that prevented you from doing an audit on it? That's what the fishy Whitefish contract does. Smart ain't it?
RosieG

Would YOU sign a contract that prevented you from doing an audit on it? That's what the fishy Whitefish contract does. Smart ain't it?

Whether some parts of the contract is off limits matters not. When you are paying a service provider to do work for you then you have an absolute OBLIGATION to audit the books. That was what I did. Audit the books/records of subcontractors to whom our company paid Millions of dollars each year. We also ran physical inventory audits  twice a year. It was stipulated in the contract. What kind of person would commit $300 million to a company and keep hands off?

Posted - October 27, 2017
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Responses


  • 34482
    Does not sound smart at all. But PREPA (PR power authority) agreed to the contract.....perhaps these types of decisions are why PR has so much debt.

    Personally as a subcontractor....I would not allow the general contractor to audit my books.  Not their business how much money I am making off their contract.  That would hurt negotiating power.  Now makes sense to have an inventory requirement so you know I can fulfill my end of the contract. That would be understandably need to be verifiable. 
      October 27, 2017 9:51 AM MDT
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  • 22891
    dont sound smart to me
      October 27, 2017 10:45 AM MDT
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