Course description
Auditing the Purchasing Function - OAP302WEB
Purchasing activities typically represent a large percentage of expenses and take many forms in the procurement of goods, services and supplies required to meet everyday business needs. These items must be acquired efficiently and at an optimal price to keep production and service activities in motion without disruptions. This webinar covers the risks inherent in the procurement function, the strategic alliances that are often made, the information systems used, the management processes it affects and the bidding, vendor selection and contracting processes.
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Who should attend?
Staff and Senior Auditors, Internal and External Auditors, Audit Managers and Purchasing personnel.
Prerequisites - None
Training content
You will learn how to perform value-added audits of the purchasing function from the identification of the objectives, best practices, key risks, essential controls, and test procedures.
Introduction:
- The strategic importance of the procurement function and purchasing activities
- The advantages and potential problems of different procurement strategies
- Techniques to improve the efficiency, economy and effectiveness of purchasing activities
Entity Level Controls and Performance:
- Their definition, types, characteristics, strengths and weaknesses
- Organizational structure, strategic objectives, people, processes, risks and controls
- Learn how to assess the presence, condition and quality of procurement entity-level controls and the process overall
- Balancing the procurement audit from a strategic and operational perspective
Bidding:
- Examination of the most commonly used and effective techniques to evaluate the bidding process
- Pros and cons of different techniques
- Competitive and sole-provider mechanisms
Data Analytics:
- The benefits of using data to assess risks and the quality of internal controls
- Ways of obtaining relevant data and using it to assess the performance of the procurement function
- Using data to identify questionable practices
Procurement Cards:
- Key risks and controls
- Cardholder setup, purchasing limits and MCC controls
- Reconciliations and variance analysis
- Common abuses and how to prevent and detect them
Contracting:
- Ensuring the transparency and fairness of the process
- Vendor selection and management
- Vendor list maintenance
- Assessing the controls of third parties: the right to audit and SOC reports
- Managing purchase orders, work orders, contracts and service level agreements
Vendor Performance:
- Assessing the viability and competence of suppliers
- Vendor and contract performance monitoring
- Criteria for effective key performance indicators
The Purchasing Cycle:
- Risks and controls related to budgeting, purchase orders and requisitions
- Examining RFI, RFP and RFQ
- Using EDI, barcoding and RFID technologies
Purchasing Fraud:
- Common purchasing and contract frauds schemes by employees and suppliers
- Preventing abuse and detecting anomalies
- Data analytics and helpful monitoring procedures
- Techniques to prevent corruption, asset misappropriation, purchasing and contract fraud
Audit Programs:
- Creating a risk assessment, risk matrix and audit program
- Key considerations during the planning, fieldwork and reporting phases
- Examination of the most commonly used and effective tools to evaluate the procurement function
- Pros and cons of different tools and techniques
Certification / Credits
NASBA Certified CPE: 2 Credits Auditing
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