What is Vendor Master Audit?

Definition

Vendor Master Audit is the systematic review and evaluation of an organization’s vendor master data and related processes to ensure accuracy, completeness, compliance, and operational efficiency. It helps identify errors, duplicates, outdated information, or policy violations within the Vendor Master and associated records.

Key Audit Activities

• Vendor Master Maintenance: Reviewing processes for creating, updating, and deactivating vendor records to ensure compliance with internal policies.

• Vendor Master Cleansing: Identifying and correcting duplicate, incomplete, or outdated vendor data to maintain accuracy.

• Vendor Master Migration: Verifying that data transfers between systems preserve integrity during ERP upgrades or system consolidations.

• Audit Trails: Examining Vendor Audit Trail logs to confirm proper authorization and adherence to Segregation of Duties (Vendor Management).

• Vendor Master Governance: Assessing adherence to governance policies, including oversight from a Vendor Master Center or centralized management function.

Governance and Compliance

Vendor Master Audits support Vendor External Audit Readiness and Vendor Internal Audit by providing documented evidence of controls, approvals, and data integrity. Regular audits ensure that Vendor Master Data is accurate, compliant, and aligned with organizational policies, reducing operational risk and improving financial reporting accuracy.

Summary

A Vendor Master Audit is a structured evaluation of vendor master data and processes, ensuring data integrity, compliance, and operational efficiency. Through governance frameworks, audit trails, and maintenance reviews, organizations strengthen controls, support audits, and maintain reliable vendor information.