Course Summary:
Within the public sector, procurement is a huge expense funded with taxpayer dollars. Internal audit can provide assurance on the effectiveness of an organization’s plans and programs to procure goods and services with efficient practices.
The purpose of this program is to provide students with an in-depth understanding of the theoretical as well as practical aspects of procurement audit, particularly, how it fits into an overall audit and functional review strateg
The sourcing function is in the midst of unprecedented change. The transformation is being driven by globalization in consumer and supplier markets, as well as by rapid technological advances that facilitates procurement on any scale.
This program focuses on the planning, organizing, leading, and controlling the procurement audit function and provides guidance on world class practices and procurement effectiveness and efficiency.
Course Objectives:
- Develop procurement audit plans
- Establish the organization and staffing structure for the procurement audit team
- Examine the different methods of review and evaluation
- Discover the deficiencies and shortcoming of the target organization’s procurement system
- Learn how organization’s can satisfy world class procurement system criteria
- Discuss what it means to have an effective and efficient procurement system
- Gain insights into the different procurement practices that define a world class organization
- Explain how to review purchase orders and contracts, both manual and electronic
- Analyze data and information extracted from purchase order and contract files
- Discuss how procurement audits can be used to improve organization policies and procedures
- Determine the most effective methods to interview procurement personnel during the procurement audit.
- Understand how to conduct the exit interview
Master the documentation required for the final audit report
Course Outline
Introduction Procurement Audit Flowchart
Planning and Organizing the Audit
- Develop the Plan and Schedule
- Obtain advance data and information
- Refine the Scope of the Review
- Arrange On-Site Review
Conducting the Audit
Leading & Controlling the Audit Team
- Conduct Pre-Review Meeting
- Conduct Entrance Conference With Organization
- Review Policies, Procedures, and Forms
- Review Random Sample of Purchase Orders and Contracts
- Compile and Analyze Statistics
- Interview Other Procurement Personnel
- Final Review of Team Input
- Write Preliminary Observations and Findings
- Informal Exit with Procurement Staff
- Discuss Observations/Findings with the Sponsor
- Formal Exit Conference
- Write Report and Recommendations
- Evaluate Corrective Action Plan
