Auditing sales incentive contracts for a major manufacturer

Our client is an international car manufacturer with an extensive sales network in France which is almost exclusively composed of franchisees.

 

Context

Our client was looking for an audit partner capable of ensuring that the terms of the sales incentive contracts, binding our client to its dealers, were correctly applied. The volume of control to perform and the special contractual features regarding the automotive dealers involved, required a collabora­tive approach and the modelling of a specific methodology. Based on a 20 year experience, Mazars was selected for its in-depth commercial means knowledge and capacity to provide customized added value.

Solution

A specific and innovative methodology was developed, relying in particular on dedicated IT tools, which allowed the Mazars team to scan several aspects of commercial actions, regardless of the automotive dealer involved. After identifying numerous misstatements and analyzing their origins, they were able to suggest improvements to limit risks related to the scope.

Impact

Mazars’ specific approach, combined with our own expertise and dedicated resources, led to the amendment of substantial bonuses granted to dealers based on incorrect self-statements, at a very low cost regarding savings for the car manufacturer.