--- title: Compliance and Audit Management with CLM description: In-house legal teams need a contract compliance audit program. It's nearly impossible to handle manually. Here's how you can use CLM to manage your audits. image: https://blog.linksquares.com/hubfs/Compliance%20.png --- [Skip to content](https://blog.linksquares.com/compliance-and-audit-management-with-clm#main-content) [LinkSquares](https://blog.linksquares.com/) Open Mobile Menu [LinkSquares](https://linksquares.com/) Close Mobile Menu [Why LinkSquares](https://linksquares.com/why-linksquares/) [Products](https://linksquares.com/products/) --- [The LinkSquares Cloud One platform for all your in-house legal needs](https://linksquares.com/products/linksquares-cloud/) --- Contract Lifecycle Management Create, review, manage and sign contracts Legal Project Management Centralize your work and keep projects moving Cross-product capabilities Get scalability, efficiency and connectivity LinkSquares Onboarding Experience A step by step guide to get started today --- [Solutions](https://linksquares.com/solutions/) [Customer Stories](https://linksquares.com/customers/) Resources Content [LinkSquares+ Content curated for in-house leaders](https://linksquares.com/plus/) [The Library](https://linksquares.com/library/) In the studio [Demo Library](https://linksquares.com/demo-library/) Community & Events [Customer Stories](https://linksquares.com/customers/) [Events & Webinars](https://linksquares.com/events/) Learning [Blog](https://blog.linksquares.com/) [In-House Insights](https://linksquares.com/inhouse-insights/) [Knowledge Base](https://help.linksquares.com/) [Events](https://linksquares.com/events/) [About Us](https://linksquares.com/about-us/) [Careers](https://linksquares.com/careers/) [Press](https://blog.linksquares.com/tag/linksquares-news-press) [Pricing](https://linksquares.com/pricing/) [Request a demo](https://linksquares.com/demo-request/) Back Close Mobile Menu [Contract Lifecycle Management](https://linksquares.com/products/) [Finalize Streamline your contract creation process](https://linksquares.com/products/finalize/) [Sign Get your contracts executed faster](https://linksquares.com/products/sign/) [Analyze Your post-signature analytics & repository](https://linksquares.com/products/analyze/) [CLM Suite One platform to rule them all](https://linksquares.com/products/) [Request a demo](https://linksquares.com/demo-request/) Back Close Mobile Menu [Legal Project Management](https://linksquares.com/products/) [Prioritize Manage, track, and report on legal work in one place](https://linksquares.com/products/prioritize/) [Request a demo](https://linksquares.com/demo-request/) Back Close Mobile Menu [Cross-product capabilities](https://linksquares.com/products/) [LinkAI Predictive and generative AI](https://linksquares.com/products/analyze/features/ai/) [Integrations Connect the tools you love](https://linksquares.com/integrations/) [Reporting Improve your teams efficiency with KPIs](https://linksquares.com/products/analyze/features/dashboard/) [API Integrate with any third-party app](https://linksquares.com/integrations/linksquares-api/) [Request a demo](https://linksquares.com/demo-request/) Back Close Mobile Menu [Cross-product capabilities](https://linksquares.com/products/) [Onboarding We're here for you from day one](https://linksquares.com/onboarding-services/) [Services Short on time? 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[Learn more](https://linksquares.com/agentic-ai/) Contract Lifecycle Management Create, review, manage and sign contracts Legal Project Management Centralize your work and keep projects moving Unified Capabilities Get scalability, efficiency and connectivity LinkSquares Onboarding Experience A step by step guide to get started quickly [Finalize Streamline your contract creation process](https://linksquares.com/products/finalize/) [Sign Get your contracts executed faster](https://linksquares.com/products/sign/) [Analyze Your post-signature analytics & repository](https://linksquares.com/products/analyze/) [CLM Suite One platform to rule them all](https://linksquares.com/products/) [Prioritize Manage, track, and report on legal work in one place](https://linksquares.com/products/prioritize/) [LinkAI Predictive and generative AI](https://linksquares.com/ai/) [Agentic AI Smarter contracting with a multi-agent approach](https://linksquares.com/agentic-ai/) [Integrations Connect the tools you love](https://linksquares.com/integrations/) [Reporting Improve your teams efficiency with KPIs](https://linksquares.com/products/analyze/features/dashboard/) [API Integrate with any third-party app](https://linksquares.com/integrations/linksquares-api/) [Onboarding We're here for you from day one](https://linksquares.com/onboarding-services/) [Services Short on time? 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Instead, legal teams and compliance stakeholders, including IT and finance, need to keep track of contracts and contract data — e.g. privacy clauses, renewal dates, obligations — after the agreement has been signed in order to manage risk. Every organization, from growth stage to enterprise, should establish a contract compliance audit program to ensure that contracts follow internal and external rules. With regularly scheduled compliance audits, risk-concerned teams like legal, finance, and IT can fulfill obligations and comply with regulatory requirements more effectively. All the moving parts of the audit process make it nearly impossible to do manually. Using [Contract Lifecycle Management (CLM)](https://blog.linksquares.com/what-is-clm) software, businesses can manage their contract compliance audit programs, collaborate cross-functionally, and easily gather necessary data. Here are some ways you can use CLM to manage your audits. ## Verify Financial Data CLM’s centralized repository enables [finance](https://go.linksquares.com/on-demand-cockpit-counsel-eric-dutcher) to find every relevant contract and extract financial data to generate financial reports and verify financial statements. With an audit trail that tracks everything that happens to the contract throughout its lifecycle, CLM helps finance prove that the company has established and follows internal processes and controls, which the [SOX Act](https://blog.linksquares.com/how-clm-helps-with-sox-and-contract-compliance)and other regulations require.  ## Audit Data Security for SOC2 SOC2 compliance is a huge indicator of how serious a company is about protecting customer data. When preparing for a SOC2 audit or maintaining compliance, IT teams have to prove that their internal systems, processes, and tools are secure. Not only does CLM encrypt contract data, but it also gives teams the power to control user access and permissions, safeguarding sensitive data from both cyberattacks and rogue employees. ## Build Compliance into the Contract Process If contract compliance is an afterthought, then audits will always feel like a slog. Instead, legal teams should build it into the contract process so that everyone has what they need for a smooth audit process. Here’s how: ### Have clear and consistent terms in your contracts Every contract, regardless of execution date, should have the most up-to-date legal-approved terms at any given time. Legal teams can use CLM to standardize global terms and update legacy contracts, preventing inconsistencies that would increase risk. [![evaluate clm ](https://no-cache.hubspot.com/cta/default/6934676/a2daf65f-e39e-451a-a0f5-e6a3a2b25d05.png)](https://cta-redirect.hubspot.com/cta/redirect/6934676/a2daf65f-e39e-451a-a0f5-e6a3a2b25d05) ### Monitor contracts and document processes Don’t wait for upcoming renewals to check on your contracts. Run reports to monitor privacy terms, important dates, and service-level promises so you can stay on top of your obligations and identify gaps more quickly. Use the audit trail to track versions and ensure you’re using the most recent and relevant terms. ### Centralize storage Centralized contract storage ensures that you can find all your agreements in one place. This is crucial not just for data protection, but also for ensuring that all stakeholders have access to the contracts and documents they need for their own compliance audits. ## Takeaways By necessity, a contract compliance audit program should be a cross-functional initiative that helps legal protect the business and support other teams during their own audits. See how LinkSquares CLM can help you manage your audit program. [Request a demo](https://go.linksquares.com/demo-request) today. ![avatar](https://blog.linksquares.com/hs-fs/hubfs/alyssa%20.jpeg?width=290&name=alyssa%20.jpeg) #### [Alyssa Verzino](https://blog.linksquares.com/author/alyssa-verzino) Alyssa Verzino is a Senior Content Marketing Manager at LinkSquares. ## Subscribe to the LinkSquares Blog Stay up to date on best practices for GCs and legal teams, current events, legal tech, and more. ## Related Articles ### [Alyssa Verzino Dec 07, 2021 3 min read Effectively Audit Your Customer Contracts: Part 1 When it comes to contract management best practices, legal teams are encouraged to audit contracts to identify any overlooked ... Start Reading](https://blog.linksquares.com/audit-contracts-process) ### [Alyssa Verzino Mar 28, 2023 6 min read LIBOR Transition: 2023 Updates As the June 30, 2023 expiration date for London Interbank Offer Rate (LIBOR) approaches, businesses should assess impacted ... Start Reading](https://blog.linksquares.com/libor-transition-2023-updates) ### [Alyssa Verzino Jun 15, 2023 4 min read How CLM Helps With SOX and Contract Compliance In the early 2000s, corporations like Enron and Worldcom mismanaged their funds, hid their losses, and lied about it to ... 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It's nearly impossible to handle manually. Here's how you can use CLM to manage your audits.", "author" : { "@type" : "Person", "name" : "Alyssa Verzino" }, "dateModified" : "2023-07-25T17:07:33Z", "datePublished" : "2023-07-25T17:07:33Z", "headline" : "Compliance and Audit Management with CLM", "image" : "https://6934676.fs1.hubspotusercontent-na1.net/hubfs/6934676/Compliance%20.png", "inLanguage" : "en", "keywords" : "[Regulatory & Compliance]", "mainEntityOfPage" : { "@type" : "WebPage" }, "name" : "Compliance and Audit Management with CLM", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://6934676.fs1.hubspotusercontent-na1.net/hubfs/6934676/Navigation/logo_643dd1b1.svg" }, "name" : "LinkSquares" }, "text" : "It’s possible to forget about a contract after it’s been signed, but that’s a costly mistake. Instead, legal teams and compliance stakeholders, including IT and finance, need to keep track of contracts and contract data — e.g. privacy clauses, renewal dates, obligations — after the agreement has been signed in order to manage risk. Every organization, from growth stage to enterprise, should establish a contract compliance audit program to ensure that contracts follow internal and external rules. With regularly scheduled compliance audits, risk-concerned teams like legal, finance, and IT can fulfill obligations and comply with regulatory requirements more effectively. All the moving parts of the audit process make it nearly impossible to do manually. Using Contract Lifecycle Management (CLM) software, businesses can manage their contract compliance audit programs, collaborate cross-functionally, and easily gather necessary data. Here are some ways you can use CLM to manage your audits. Verify Financial Data CLM’s centralized repository enables finance to find every relevant contract and extract financial data to generate financial reports and verify financial statements. With an audit trail that tracks everything that happens to the contract throughout its lifecycle, CLM helps finance prove that the company has established and follows internal processes and controls, which the SOX Act and other regulations require. Audit Data Security for SOC2 SOC2 compliance is a huge indicator of how serious a company is about protecting customer data. When preparing for a SOC2 audit or maintaining compliance, IT teams have to prove that their internal systems, processes, and tools are secure. Not only does CLM encrypt contract data, but it also gives teams the power to control user access and permissions, safeguarding sensitive data from both cyberattacks and rogue employees. Build Compliance into the Contract Process If contract compliance is an afterthought, then audits will always feel like a slog. Instead, legal teams should build it into the contract process so that everyone has what they need for a smooth audit process. Here’s how: Have clear and consistent terms in your contracts Every contract, regardless of execution date, should have the most up-to-date legal-approved terms at any given time. Legal teams can use CLM to standardize global terms and update legacy contracts, preventing inconsistencies that would increase risk. Monitor contracts and document processes Don’t wait for upcoming renewals to check on your contracts. Run reports to monitor privacy terms, important dates, and service-level promises so you can stay on top of your obligations and identify gaps more quickly. Use the audit trail to track versions and ensure you’re using the most recent and relevant terms. Centralize storage Centralized contract storage ensures that you can find all your agreements in one place. This is crucial not just for data protection, but also for ensuring that all stakeholders have access to the contracts and documents they need for their own compliance audits. Takeaways By necessity, a contract compliance audit program should be a cross-functional initiative that helps legal protect the business and support other teams during their own audits. See how LinkSquares CLM can help you manage your audit program. Request a demo today.", "url" : "https://blog.linksquares.com/compliance-and-audit-management-with-clm", "wordCount" : "733" } ```