The legal auditor will sign a confidentiality agreement and will not disclose IBM until the period under review and will be payable. The most important thing you want to get in this confidentiality agreement is to make sure that you (the external auditor) cannot share data without your consent with the organization that ordered the audit. This sounds linear, but from our experience without a confidentiality agreement, these external auditors will often share data before it is disconnected from your team. The result is that the kreditor sees early, false versions of the ELP. This may include development and testing environments, range products, etc. This often results in them predicting purchases for you on the basis of erroneous data, and this makes it more difficult to get them to accept the right data when it is ready. The NDAs offered by auditors often contain no restrictions on the confidential information they are allowed to disclose to their customers, software vendors. Controlled companies must ensure that audit information submitted for reporting is defined in the NDA in a manner consistent with the terms of the control licensing agreements. This is not news that software audits are becoming more frequent and aggressive. In fact, here at MetrixData360, we have been beating this drum for years.
One of the models we`ve seen is that different vendors use third parties to compile the license position. These external auditors may be accounting companies or only partners of the software provider. In both cases, it is important that you obtain certain confidentiality agreements to protect yourself, as in many cases they are encouraged to fill a licensing gap. Many companies make far too little effort to reach appropriate privacy agreements during software audits. Some companies even completely neglect NNAs during the audit process, believing that they do not have the leverage to demand appropriate safeguards for the information that auditors will ask for. It`s a mistake that can cost a company millions. It is important to remember that these external auditors work for the lender and are also paid by them. In most cases, we understand that they are rewarded for addressing the licensing gaps. You run your scripts, ask for different data to make available to you and you present an ELP that will display your privileges that will be compared to your deployments and identify all the flaws in the licensing process. It is important to note that the first ELPs they present to you are defective and contain false assumptions. They will then provide evidence and work to ensure that it is correct. In our experience, these first ELP tilts are strong in the seller`s favor.
You don`t want them to think that these early ELP companies are representative of your true licensing position. This is where the confidentiality agreement comes in. Confidentiality agreements in a software audit are one of the most important things you need to take when reviewing. As more and more software providers use external auditors to perform actual audits and create the effective licensing position (ELP), a confidentiality agreement is essential. An NDA is often the only way to place a fence around the scope of a software audit. Many software vendors and their recruited reviewers may refuse to consider full pre-audit agreements. However, most of them will generally agree to negotiate NDAs to control the handling of audit data. A controlled entity must seize this opportunity by ensuring that the data to be disclosed is relevant to the type of questions that the statutory auditor may ask.