Common use of Record Keeping and Audits Clause in Contracts

Record Keeping and Audits. (a) Seller shall identify, create and safely retain full and detailed accounts and exercise all such controls as may be necessary or helpful for proper financial management, documentation and compliance under this Purchase Order. Seller’s records, books, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data related to this Purchase Order (“Records”) shall be preserved for a period of three (3) years after final payment or for such longer period as may be required by law. (b) TI shall have the right to audit all of Seller’s Records (in whatever form they may be kept, whether written, electronic or other) and Seller’s operations related to this Purchase Order. Seller agrees to provide TI’s internal and external auditors with access to Seller’s offices and/or manufacturing locations and relevant records and physical items during normal business hours, for purposes of auditing Seller’s compliance with the terms of this Purchase Order. TI shall provide Supplier with twenty-four (24) hours prior written notice of its intention to audit Supplier. TI’s right to audit under this section shall also include subcontractors (which subcontractors must be approved by TI as provided below). Seller shall ensure that its agreements with its subcontractors include TI’s audit rights.