Review Questions on Overview of Procurement Audit and Risk Management

procurement Audit and risk management

Review Questions

  1. Define procurement audit
  2. Explain the concept of true and fair view as used in procurement audit
  3. List the statutory or primary and secondary objectives of procurement audit
  4. Discuss the importance of procurement audit
  5. Describe the stages of procurement audit
  6. Explain the elements of an assurance engagement
  7. Compare and contrast procurement auditing and accounting
  8. Explain five types of users of audited procurement reports
  9. Discuss the benefits of procurement audit to the procurement entity, owners and other
  10. Discuss five types of procurement audits
  11. Differentiate between internal audit and external audit
  12. Discuss five operational risk in procurement and supply chain:
  13. Discuss types of exchange rate risks mitigation strategies that a procurement function may face when sourcing goods from China
  14. During tender evaluation, the committee has to evaluate supplier financial capacity to determine his ability to fulfill the contractual obligations.
    1. Recommend to the committee five sources of financial information about tenderers (suppliers)
    2. What are the signs of a supplier who is facing financial difficulties?
    3. Suggest the mitigating measures against supplier financial difficulties
  15. All purchasing organizations encounter supply risk, whether it is explicitly understood and assessed, or reactively managed. Discuss
    1. Key supply risk factors
    2. Supply risk mitigation
    3. Contractual provisions to be included in a contract between a buyer and supplier to minimize supply risk
  16. Evaluate the contribution of effective project planning on managing procurement and supply chain risks
  17. Using the STEEPLE tool discuss the external risks that affects procurement organisation.

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