An AI contract audit agent checks each contract for completeness: signed copy, current amendments, owner, key dates and required terms.
A person sets the contracts and tests to apply.
The agent gathers the in-scope agreements.
Each is tested against required clauses and fields.
Gaps are listed with evidence and severity.
The auditor confirms findings and judges severity.
Actions and owners are logged until closed.
It compares contracts with policy and with other records, such as invoices paid against agreed rates and spend against committed values.
It produces an exceptions report ordered by risk, with evidence, for the audit owner to review.
Audits normally cover a small sample because each contract takes time to examine. Problems in the unsampled majority stay hidden until they cost something.
Most contracts are never examined.
Contract, invoice and vendor records sit in different systems.
Reviewers interpret the same rule differently.
By the time the report lands, terms have changed.
Issues are noted and then forgotten.
Choose the contracts, the policy rules and the checks to run.
Verify signed copy, owner, dates, amendments and required fields for each contract.
Compare terms with your standards, such as required clauses and approval levels.
Compare contract rates and values with invoices, POs and vendor data.
List exceptions with evidence and follow each to resolution.
Bring a small sample and watch Flo work through it.
| Aspect | By hand | With the agent |
|---|---|---|
| Sampling | Auditors sample a few contracts. | The agent can check every in-scope contract. |
| Evidence | Findings rely on screenshots. | Each finding cites the clause or missing field. |
| Consistency | Auditors apply tests differently. | The same tests run on every contract. |
| Effort | Audit prep takes weeks. | Pulling and testing documents is automated. |
| Follow-up | Fixes are lost in email. | Actions are tracked to closure. |
| If | Then | Who decides |
|---|---|---|
| a required clause is missing | list as a gap | Auditor |
| a signature is missing | list as a control failure | Contract owner |
| the record differs from the document | list as data mismatch | Contract administrator |
| a contract is expired but in use | flag | Contract owner |
| approval evidence is missing | flag | Finance leader |
| the same issue repeats across contracts | group it as a pattern | Auditor |
Some agreements fall in grey areas. The agent lists them separately and the auditor decides on inclusion.
Old contracts predate the current policy. The agent marks them as legacy and the auditor decides on the test.
Some contracts are restricted. The agent applies access rules and the auditor requests approval.
A finding is wrong due to unusual wording. The auditor overrides it with a reason that is logged.
Talk it through with the team. We will map it to your steps and show where a person stays in control.
Start with one control, such as signature present.
Compare with manual audit.
Widen once results match.
Close findings with owners.
This shows whether audits lead to fixes. Low closure suggests unclear ownership or findings that are not worth the effort.
Quick answers to what people ask most about contract audit.
Book a demoIt is a systematic check that contracts are complete, valid, compliant with policy and consistent with actual spend and use, with exceptions reported for follow-up.
The agent can check every contract against the same tests, so coverage is wider and results are consistent. People still review the exceptions.
Policy rules, the vendor record, purchase orders and invoices, where those records are available to it.
No. It reports with evidence. Owners and the audit lead decide and carry out the fixes.
Late fee clause detection is the finding of contract terms that charge interest or penalties when an invoice is paid after its due date.
→SaaS contract review is the examination of a software subscription agreement for terms that behave differently from other contracts, including licence metrics, auto-renewal, price uplifts, data rights, uptime commitments and exit.
→Price uplift clause detection is the finding of contract terms that allow a supplier to raise fees during or after the term, such as fixed percentage escalators, inflation-linked increases or rights to reprice at renewal.
→Contract termination is the ending of an agreement before or at its end date, which requires following the notice, form and timing rules the contract sets.
→Bring a small sample of real items. We will show what Flo handles on its own and where it hands over to your team.
