Definition of Procurement Audit

procurement Audit and risk management

Definition of Procurement Audit

Scheuing, purchasing management defines Procurement Management Audit as a comprehensive, systematic, independent and periodic examination of company purchasing environment, objectives and tactics, to identify problems and opportunities and facilitate the development of appropriate actions.

It can also be defined as an independent examination of the procurement records and procedures of a procuring entity to ascertain or verify whether they give true and fair view and procurement procedures have been followed and report the findings regarding procurement operations. True means information is factual and conforms to reality and conforms to required standards and law while Fair means information is free from discrimination and bias and is compliance with expected standards and rules

Audit of procurement is a regular process which is normally carried out after the completion of the fiscal year. As the process of procurement has to be conducted as per specified rules and regulations, its examination and evaluation of use of resources is a critical task.

In a procurement audit, the procuring entity records are checked to see if appropriate procurement procedures have been followed. In this audit, the procuring entity will need to produce all documents related to procurement and these documents may include advertisement copies, invitations to bid, bidding documents, bid evaluations, bids, contracts, delivery notes, shipping documents, progress certificates, completion certificates, receipts, cashbook and payment vouchers.

The main objective of procurement audit is to ensure that the procurement of goods, services and works have been done efficiently, economically, and effectively within the provision of the relevant guidelines such as Public procurement asset and disposal Act 2015 and its regulations, Contract Agreement and other relevant guidelines. In addition, the audit objective is to express an opinion whether the procurement records give a true and fair view.




Fundamental Questions in Procurement Audit

  1. Do procurement records represent true and fair view of procurement transactions?
  2. Did procurement operations comply with applicable laws and regulations?

Did the purchases, the processes used, the allocated funds and the correspondent results follow the main principles of economy, efficiency and effectiveness?

Scheuing, purchasing management defines Procurement Management Audit as a comprehensive, systematic, independent and periodic examination of company purchasing environment, objectives and tactics, to identify problems and opportunities and facilitate the development of appropriate actions.

It can also be defined as an independent examination of the procurement records and procedures of a procuring entity to ascertain or verify whether they give true and fair view and procurement procedures have been followed and report the findings regarding procurement operations. True means information is factual and conforms to reality and conforms to required standards and law while Fair means information is free from discrimination and bias and is compliance with expected standards and rules

Audit of procurement is a regular process which is normally carried out after the completion of the fiscal year. As the process of procurement has to be conducted as per specified rules and regulations, its examination and evaluation of use of resources is a critical task.




In a procurement audit, the procuring entity records are checked to see if appropriate procurement procedures have been followed. In this audit, the procuring entity will need to produce all documents related to procurement and these documents may include advertisement copies, invitations to bid, bidding documents, bid evaluations, bids, contracts, delivery notes, shipping documents, progress certificates, completion certificates, receipts, cashbook and payment vouchers.

The main objective of procurement audit is to ensure that the procurement of goods, services and works have been done efficiently, economically, and effectively within the provision of the relevant guidelines such as Public procurement asset and disposal Act 2015 and its regulations, Contract Agreement and other relevant guidelines. In addition, the audit objective is to express an opinion whether the procurement records give a true and fair view.

Fundamental Questions in Procurement Audit

  1. Do procurement records represent true and fair view of procurement transactions?
  2. Did procurement operations comply with applicable laws and regulations?

Did the purchases, the processes used, the allocated funds and the correspondent results follow the main principles of economy, efficiency and effectiveness?



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