Procurement & Purchasing Process Auditing

Service summary

A review of procurement controls from requirement definition to receipt of purchased goods or services. The audit examines whether sourcing, approval and purchasing practices consistently follow the organisation’s agreed requirements.

The service gives management evidence of accountability, traceability and control effectiveness. It does not select suppliers, negotiate contracts or redesign purchasing procedures on the organisation’s behalf.

Key objectives

• Examine purchasing authorisation controls
• Assess requirement and specification accuracy
• Evaluate supplier selection evidence
• Identify procurement process exceptions

Methodology

Selected transactions are followed across the purchasing cycle, comparing authorised requirements with sourcing decisions, commitments and receipt evidence.

• Define purchasing categories, organisational boundaries and audit criteria.
• Review purchasing policies, authority limits and supplier selection requirements.
• Select transactions across values, categories and exception routes.
• Trace requisitions, evaluations, approvals and purchase commitments.
• Compare ordered requirements with receipt and acceptance records.
• Assess conflicts, deviations and the operation of existing controls.
• Report transaction-linked findings and process coverage limitations.

Key outcomes

References: [G04]

• Procurement control assessment
• Traceable transaction exceptions
• Supplier selection evidence findings
• Management oversight information