Audit cost/fee in case of a bad Audit

Hi,
This information is hard to find on the open internet, but might be useful for me and others who did not face Audits yet.
Some Vendors, Like Microsoft mention that in case of an audit and you being incompliant, you would need to purchase licenses at a higher price and pay the Audit fees.

We’d like to have costs next to our risk assessments, but we are missing that piece of the puzzle :slight_smile:

Could you please share if you’ve been in such situations - what is the price of an audit?

Thank You!

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I don’t know if anyone can actually give you the “cost” of an audit. What I do each year during LRP is an internal license position for my top 3 to 5 vendors. If we are out of compliance then I add a line item for True-up costs. You could use that number and then add a 3 - 5% audit fee to the cost. If you want to terrorize upper management you could use the MRSP or published price with a 10% audit fee as worse case scenario; however, I have never actually seen an audit use MRSP pricing. We have always been given our discounted pricing. As for the Audit Fee, I have only ever once been charged a 10% audit fee. And we get audited a lot due to M&A activity.

Oh, for Microsoft I think that specific clause is only associated to the MPSA and is not part of the EA, Cloud, or Select Plus agreements (not 100% sure about Select Plus). It was one of the reasons we moved all of our products off of the MPSA and into an EA and Cloud Agreement.

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