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
|It is the critical examination of the procurement transactions recorded in the procurement records to verify they give true and fair
|It is recording of all the day to day transactions in the books of accounts leading to preparation of Accounting records.
|It is concerned with establishment of
reliability of procurement
|It is concerned with finalization of accounts.
|The object is to certify the correctness of procurement records
|The object is to ascertain the trading results.
|Audit of procurement process and records
|Audit of financial
statements and procedures
|Procurement Audit begins when Accounting ends.
|Accounting commences when book
|It depends upon the agreement or upon the provisions of procurement law. It goes beyond procurement
|It involves various Accounting records. It involves maintenance of books of accounts. It does not go beyond books of accounts.