Difference between Procurement Auditing and Accounting

procurement Audit and risk management

Difference between Procurement Auditing and Accounting

Procurement plays an important role in all businesses. The procurement department is responsible for securing the resources needed by the company. Also in charge of spending the company’s capital, a well-run procurement department follows processes to ensure integrity each time a purchase is made. An audit reviews the procurement process to reduce fraud and offer suggestions for improvement. While audit procedures vary among organizations, there are several key procedures included in all procurement audits.

Procurement auditing is 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 report the findings regarding procurement operations. Financial Accounting is the recording, classifying and summarizing events of an economic entity in order to assist management in decision making.



Differences between procurement audit and accounting

Points  of difference Procurement Auditing Accounting
1. Definition It    is         the          critical examination of the procurement transactions recorded     in     the procurement records to verify they give       true  and      fair

view

It is recording of all the day to day transactions in the books of accounts leading to preparation of Accounting records.
2. Nature It is concerned with establishment       of

reliability              of procurement

records.

It is concerned with finalization of accounts.
3. Objects The object is to certify the correctness  of procurement records The object is to ascertain the trading results.
4. Process Audit of procurement process and records Audit of  financial

statements              and procedures

5.

Commencement

Procurement Audit begins when Accounting ends. Accounting commences when book

keeping ends.

6. Scope It depends upon the agreement or upon the provisions of procurement law. It goes beyond procurement

records.

It involves various Accounting records. It involves maintenance of books of accounts. It does not go beyond books of accounts.




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