What contract review happens in Audit
Auditors typically review a sample of their client’s contracts, to determine whether the company being audited has appropriately described its business. For example, auditors will review contracts to determine if a company actually has the customer commitments it says it has, see if it has appropriately recognized revenue, and whether it has disclosed embedded leases.
How Contracts AI can help in Audit
Contracts AI has been used for years in Audit. In fact, Audit was among the first areas where Contracts AI tech was used heavily. Audit teams can use a general-purpose contract analysis software system for this work. However, the contracts sampling review is just one piece of a broader audit procedure. A better approach can be to build Contracts AI directly into a broader-featured audit software platform, enabling auditors to (1) work more seamlessly and (2) ensure that they follow the correct procedure.