CONTRACT COMPLIANCE AUDIT OPPORTUNITY  
INCENTIVES AND PROMOTIONS  
Industry Knowledge  
ales incentives, instant or mail-in rebates, sell-through allowances, cooperative  
advertising, and myriad other monetary promotions make up a comprehensive incentive  
campaign. World-class organizations know that profit and performance depend on  
whether such incentives are aligned among players in the supply chain. An unbalanced  
campaign may result in excess inventory, out-of-stock events, incorrect forecasts, or poor  
customer service.  
Failing to fully test an incentive program post-compensation can also lead to ill effect in terms of  
a significant loss of sales revenue. in3 reviews claim processing and complex promotional costs  
to identify errors and ensure incentive programs fulfill their promise.  
Operational Challenges  
Miscalculated SPIFFs, faulty claims tracking,  
overstated available funds, and missed dates or other  
incentive parameters can easily go unnoticed when  
there is a large volume of transactions to process.  
Complicated pricing structures and an array of factors  
such as qualifying purchases, notification periods,  
deal modifications, price and inventory changes and  
unscheduled bonuses can be costly to verify.  
Overlapping agreements are a compliance headache  
when it comes to settling discounts, allowances, and  
promotional claims.  
The Opportunity  
in3 reverse-engineers the terms and conditions of  
multi-layered incentive programs and establishes  
client-specific audit angles to test compliance to  
program provisions. in3s audit experts review 100  
percent of transaction data to spot miscalculations and  
overpayments.  
Incentive audits exclude reverse transactions (such as returns and inventory transfers), reveal  
hidden chargebacks, uncover duplicate payments, and confirm whether transactions fall within  
promotional scope (e.g., transaction timing, geography, and bundling qualifications). in3 reports  
on variances it finds within incentive claims, recovers excess payout, and brings new visibility  
and transaction accuracy to incentive programs.  
Contact Tom Bennett, in3s chief operating officer, to discuss deep-dive audit  
opportunities for incentive- and promotion-related transactions.  
tb@in3corp.com or call +1 (303) 448-1191 x 102  
in3corp is an independent audit firm with worldwide operations for recovering cash, preventing future excesses or  
shortfalls, and providing tested services such as supply chain and contract compliance auditing and royalty  
verification. in3corp identifies specific opportunities for cost recovery and increased controls and provides visibility  
into business operations and supplier relationships to help clients save money.  
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