Scenario: A supplier refuses an audit; what is the appropriate action?

• A. Double the contract value to incentivize cooperation.
• B. Ignore the noncooperation and continue business as usual.
• C. Delay the audit until the next fiscal year.
• D. Stop work with the supplier, invoke audit rights, and consider contract termination or suspension for noncooperation.

Answer: (D)

When a supplier refuses an audit, the priority is to protect program integrity and verify compliance with labor and trafficking standards. Contracts typically grant audit rights and require supplier cooperation as a condition of performance. If cooperation is withheld, you stop the work, exercise those audit rights, and evaluate remedies, including suspension or termination of the contract for noncooperation. This approach directly addresses the risk, supports due diligence, and aligns with procurement rules and CTIP goals. Trying to reward cooperation with a higher contract value or simply delaying or ignoring the issue would undermine compliance, while suspending or terminating for noncooperation sends a clear, appropriate signal that audit access is a nonnegotiable part of fulfilling the agreement.