Legal Audits (Vol 1, Pt 8)

Patrick Lim
Partner at Raj, Ong & Yudistra

If you have been following this series, we explored the details of the fourth step in the process of carrying out legal contract audits. In this article, we will take a look at the next step – building your recommendations.

The following is a breakdown of step 5 in the process of conducting a legal contract audits:

Develop recommendations

Based on the results of the audit, the auditor should develop recommendations for addressing any issues or taking advantage of any opportunities that were identified. These recommendations may include changes to the contracts themselves, or to the company’s contracting processes or policies.

Prioritize the recommendations

It may not be possible to address all of the issues or opportunities identified during the audit at the same time. Therefore, it is important to prioritize the recommendations based on their significance and potential impact on the company.

Communicate the recommendations

The recommendations from the audit should be communicated to the relevant stakeholders within the company, such as the legal department, management, and the business units or functions affected by the recommendations.

Obtain approval for the recommendations

Depending on the nature and scope of the recommendations, it may be necessary to obtain approval from senior management or the board of directors before proceeding with the implementation of the recommendations.

Overall, the fourth step in the process of conducting a legal contract audit is to develop recommendations for addressing any issues or taking advantage of any opportunities that were identified during the audit, prioritize those recommendations, communicate them to the relevant stakeholders, and obtain approval for their implementation as necessary.

Our next article will take a look at the last step, implementation. See you there.

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