1. Create a global “audit castle”
Many companies have begun to fortify their headquarters to keep out aggressive auditors. From education on legal rights to the institution of processes to deal with auditors, companies are increasingly working to protect their software assets and decrease the negative ramifications of an audit. However, a common threat that is often neglected is the protection of all foreign subsidiaries as well. Software licensing vendors use this to their advantage by attempting to start an audit from these foreign subsidiaries.
Some leaders in the industry have noticed that auditors, when they can’t get to the main headquarters of a company, will go after the subsidiary instead. The secondary office may not have the management or staff to handle the patches and upgrades that the headquarter has, so this would make them an easy target.
This plan of attack emphasizes the importance of creating an “audit castle” that encompasses not just your company’s main headquarters, but all subsidiaries and branch offices as well. Any small window of opportunity left open will be taken by auditors, so it is important for foreign managers to understand what they should do if approached by auditors. The best solution is for them to refer all auditors to the home office so that your company can deal with the audit according to your timeline and procedures, not the auditors’.