Organizations are made up of systems, functions, processes, policies, procedures, and personnel. Because of this, there are potential risks that may result from omission or commission. It is therefore that functions such as procurement are subjected to regular/routine audit checks to ensure the necessary procedures were observed during execution; and therefore provide a feedback mechanism for future improvement. Procurement audits also provide a platform for investigations into cases of fraud which may cause organizational loss and negative reputation.
What is Procurement Audit?
Procurement audit is an objective and systematic examination of procurement activities of an entity to obtain reasonable evidence-based assurance that a Procuring and Disposing Entity (PDE) has complied with the public and private procurement and disposal procedures, and best procurement and disposal practices.
Why Procurement Audit?
- It indicates the extent to which procurement policies are being adhered to by public and private entities.
- It ensures that Organisations use procurement techniques and procedures as required.
- To enhance the organizational performance
- Ensures value for money.
- Helps in establishing the knowledge gaps in the procurement personnel.
- To avoid or check on fraud cases
Types of Procurement Audits Offered
Procurement audit has basically three types of audits and we do all of them;
- Preparatory audits (Procurement or disposal audits during bid preparatory process)
- Contract audits (in the course of the execution of an awarded bid), and
- Performance audits (after the completion of the contract)
At LLA, we offer procurement audit training, procurement audit planning, conduct audits, audit follow-ups, and investigations; the audits are done in accordance with the company procurement procedures.