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