Audit Defence

Audit Defence

Thanks to our 20 years of experience in global licence auditing, we are extremely familiar with the audit methodologies and tactics most software vendors adopt. Our Audit Defence Engagements are designed on this very foundation, with clear objectives to minimise our client’s financial exposure and business disruption during a potentially painful vendor licence audit.

We have always acted as trusted advisors to our clients throughout the entire audit and in many cases, reduced their licence compliance liability by up to 85% through various pre-emptive measures and post reporting negotiations tactics.
Case Study
A bank with over eighty thousand employees was notified by one of its strategic software suppliers to conduct a licence compliance audit. The bank had deployed software from this supplier in over 35 countries, with an estimated value of more than €50 million.

The bank had little confidence in the compliance of the auditing supplier and so contracted FIAC to reduce its potential compliance exposure and to establish savings during licence ‘true-up’.

During the 30-day engagement, FIAC completed an internal audit which produced the bank’s global licence compliance position for the software supplier concerned. Our work identified over €2.5 million licence saving opportunity through existing licence substitution; as well as an €8.2 million licence compliance risk that could be mitigated by re-configuration or removal of software before the supplier audit. Overall, the quantifiable Return on Investment (RoI) of our service was above 300 to 1.
Typical Vendor Licence Compliance Audit Methodology
Audit Target
Selection
Vendor
relationship
management
Customer
notification
Pre-engagement
negotiation
Audit scoping &
initiation
Scoping
assistance
Audit data
collection
Data gathering
assistance
Data analytics
and validation
Pre-submission
validation
Factual accuracy
verifcation &
confirmation
Compliance
report
verifcation
Settlement
discussions
Commercial
negotiation
support
FIAC Audit Defence Strategy
Vendor relationship management
We understand the vendor's selection criteria for audit targets, and would advise you on tactics to stay away from the top of the list, if not completely off the radar.
Pre-engagement negotiation
If you are notified for an audit, we will perform an ad-hoc assessment on your readiness and exposure, and advise on best responses to vendors to minimise financial impact.
Scoping assistance
We will help you to negotiate the geographic, organisational unit, time and product scope with the vendor so that you can start the process with confidence in readiness.
Data gathering assistance
We will work with your teams to collect the data required by the vendor, or challenge the vendor on unnecessary data requests which might be used for non-audit purposes.
Pre-submission validation
We will validate all information collected before sending out to the vendor or the vendor's appointed auditors. In many cases we will build an "Internal Audit Report" so that you are aware of your exposure (if any) before the vendor sees it.
Compliance report validation
Often the compliance report returned from the vendor or vendor appointed auditors can be lengthy and hard to interpret. We will perform a full validation on the factual accuracy of the compliance report and protect your interest accordingly.
Commercial negotiation support
We will assist you in the settlement negotiation stage if a genuine over-usage is identified. We will help you build strong business cases to obtain various waivers and discounts which will significantly reduce your financial exposure.