AUDIT LEGAL (PARTY-2 AUDITS PARTY-1)This audit contract clause (free to save and download) covers records and audits requirements when a company audits your business, and explains retention of financial records, retention period, availability and copying, access, working conditions, and overcharges for a clause about an audit contract. |
RECORDS AND AUDITS.
(a) Retention of Financial Records. Party-1 agrees to maintain complete and accurate books and records regarding all financial matters under this Agreement in accordance with generally accepted accounting practices during the Term and for a period of at least six (6) years following the date of termination or expiration of this Agreement and for any additional time required by Government Authority with jurisdiction over Party-1 (the "Retention Period"); provided, however, that if any dispute arises with respect to this Agreement, the Retention Period lasts until the resolution of the dispute becomes final and non-appealable and all obligations of the parties are fully satisfied.
(b) Audits. Party-2 or its designee has the right, during the Term and the Retention Period, to audit and inspect at Party-2's expense, during normal business hours and with reasonable advance notice, Party-1's books and records and any materials described in this provision or elsewhere expressly indicated as auditable under this Agreement. Party-1 agrees to reasonably cooperate in any audit or inspection of such records that Party-2 may undertake. During the Retention Period, Party-1 agrees to:
(i) Availability and Copying. Make its books and records, as well as external audit opinions, external audit letters, external audit statements, and external audit reports relating to Party-1's obligations under this Agreement available for inspection by Party-2 and or its authorized representatives, who will have the right to make copies on Party-1's premises or by taking any of these materials to an off site location for the sole purpose of copying at Party-2's expense.
(ii) Access. In connection with the audit, give Party-2's authorized representatives reasonable access, during regular business hours, to Party-1's officers, employees and other representatives, including, without limitation, attorneys and accountants.
(iii) Reasonable Working Conditions. Provide, without charge, computer access, office space, furniture, telephone, and electric service as necessary for Party-2's authorized representatives to conduct the audit.
(c) Overcharge. If an auditor notifies Party-1 that Party-1 overcharged Party-2 with a reasonable description of how the auditor calculated the overcharge, Party-1 agrees to pay Party-2 the amount of the overcharge. Party-2 agrees to pay the costs of the audit unless the overcharge exceeds five percent (5%), in which case Party-1 agrees to pay the costs of the audit.
(a) Retention of Financial Records. Party-1 agrees to maintain complete and accurate books and records regarding all financial matters under this Agreement in accordance with generally accepted accounting practices during the Term and for a period of at least six (6) years following the date of termination or expiration of this Agreement and for any additional time required by Government Authority with jurisdiction over Party-1 (the "Retention Period"); provided, however, that if any dispute arises with respect to this Agreement, the Retention Period lasts until the resolution of the dispute becomes final and non-appealable and all obligations of the parties are fully satisfied.
(b) Audits. Party-2 or its designee has the right, during the Term and the Retention Period, to audit and inspect at Party-2's expense, during normal business hours and with reasonable advance notice, Party-1's books and records and any materials described in this provision or elsewhere expressly indicated as auditable under this Agreement. Party-1 agrees to reasonably cooperate in any audit or inspection of such records that Party-2 may undertake. During the Retention Period, Party-1 agrees to:
(i) Availability and Copying. Make its books and records, as well as external audit opinions, external audit letters, external audit statements, and external audit reports relating to Party-1's obligations under this Agreement available for inspection by Party-2 and or its authorized representatives, who will have the right to make copies on Party-1's premises or by taking any of these materials to an off site location for the sole purpose of copying at Party-2's expense.
(ii) Access. In connection with the audit, give Party-2's authorized representatives reasonable access, during regular business hours, to Party-1's officers, employees and other representatives, including, without limitation, attorneys and accountants.
(iii) Reasonable Working Conditions. Provide, without charge, computer access, office space, furniture, telephone, and electric service as necessary for Party-2's authorized representatives to conduct the audit.
(c) Overcharge. If an auditor notifies Party-1 that Party-1 overcharged Party-2 with a reasonable description of how the auditor calculated the overcharge, Party-1 agrees to pay Party-2 the amount of the overcharge. Party-2 agrees to pay the costs of the audit unless the overcharge exceeds five percent (5%), in which case Party-1 agrees to pay the costs of the audit.