Chapter 6. Assessing the Financial Stability of Vendor Organizations, Examining Vendor Organization Contracts, and Examining Accounting Treatment of Computer Equipment and Software

The first section of this chapter discusses the reasons that organizations should assess the financial stability of the vendor organizations with which they do business and provides a high-level approach to perform such assessments. The second section discusses keys to examining contracts and agreements that organizations may have entered into with vendor organizations. The chapter concludes with a brief section on the examination of the accounting treatment of computer hardware and software.

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