Use the best-practice steps in this audit program sample to conduct audits on labor contracts awarded to third-party contractors. The document outlines the procedures for reviewing and evaluating the efficiency and effectiveness of internal controls, management reporting and contract awarding processes. It provides a detailed work program, including planning, fieldwork and reporting stages, with specific objectives to verify that labor contracts are awarded based on competitive bids or other appropriate basis.

The document also aims to identify opportunities for process improvement by highlighting potential issues and providing recommendations. Furthermore, it includes guidelines for understanding the company's methodology for awarding labor contracts, ensuring that contracts are properly executed and verifying that work is performed according to contract stipulations. The document ultimately serves as a tool for enhancing transparency, accountability and efficiency in the management of third-party labor contracts.

Sample best-practice steps include:

• Review the contracts for comprehensiveness and clarity.
• Ask about the company's use of standard contracts.
• Ensure that the appropriate company and third-party personnel properly execute the contracts via dated signatures.