A junior security analyst is reviewing a new vendor contract and notes it contains a standard right-to-audit clause. The analyst informs their manager that this gives the company the right to conduct surprise, on-site security inspections at the vendor's location at any time. Which of the following BEST describes the analyst's interpretation?
The analyst's interpretation is incorrect because right-to-audit clauses typically require reasonable notice and limit audits to normal business hours.
The analyst's interpretation is correct, but only if the vendor operates within a government-regulated industry.
The analyst's interpretation is correct, as a right-to-audit clause implies consent for unannounced inspections to ensure constant compliance.
The analyst's interpretation is incorrect because audits can only be conducted if a security breach has already been confirmed.
The analyst's interpretation is incorrect. A standard right-to-audit clause grants the authority to perform an audit but almost always includes provisions for reasonable advance notice and specifies that audits must occur during normal business hours to prevent disrupting the vendor's operations. The right to perform unannounced audits is not an implicit feature and would need to be explicitly stated in the contract.
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What is a right-to-audit clause?
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What are the implications of unannounced audits?
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What are common terms included in a right-to-audit clause?