This scientific paper is devoted to investigating the functions of supplier audit within the value chain- management system. Objective: To develop methods for supplier auditing as a tool for value chain management, with particular emphasis on formalized selection criteria and a system of evaluation indicators. Methods: The research employed methods of generalization based on comparative and statistical analysis, as well as methods of logical construction and concomitant variations. Results: The functions and place of auditing activities within the value chain-management system have been identified; the criteria for contractor selection have been structured and ranked; key indicator systems for enabling the quantitative assessment of effective interaction with suppliers have been developed; and a process-based algorithm for conducting audits inspections has been presented. This paper provides a detailed analysis of the procedural stages of an audit, systematizes evaluation criteria for contractor selection, and develops a system of indicators for evaluating the effectiveness of auditing activities. Particular attention is given to the methodology for substantiating the integration of audit procedures into the strategic management of procurement activities. Practical significance: Based on a comprehensive study of contemporary management practices, a set of practical recommendations have been formulated aimed at optimizing supplier audit procedures in the context of digital transformation of business models. The study also demonstrates the practical relevance of implementing the proposed audit framework, especially in view of the growing need to enhance the flexibility and responsiveness of value chain-management systems in a changing external environment.