AUDIT FOR THE PROCUREMENT FUNCTION

GEDE LEO NADI DANUARTA

KEVIN HARIYANTO
CAREN ANGELLINA MIMAKI
 Audit Objectives and Benefits

1. To achieve goals in accordance with the organization's vision and mission

2. Assessing economization, efficiency, and effectiveness of procurement

3. Encourage the development and maintenance of reliable procurement information management

4. Ensure that procurement activities are in accordance with applicable rules and regulations.
 Audit Scope

1. Procurement organization
2. The procurement process consisting of:
a. Procurement planning
b. Procurement
c. Paying and reporting
Audit Steps
1. Audit planning, which involves:
a) Risk assessment and determination of the
scope of the audit
b) Determination of the audit schedule
c) Determination of resource requirements in
carrying out audits
2. Collection and evaluation of audit findings
3. Reporting
4. Follow-up on audit results
 Goods / Services Procurement Process

In general, the procurement process begins with

planning, implementing, reporting and evaluating
procurement activities
Procurement Planning

Procurement planning includes: determining

the need for goods / services (inputs) in the
company's operations, both the quality,
quantity, and determination of the time when
the goods must be available.
 Procurement Implementation

Strict control at this stage is carried out to ensure that

the procurement committee is not wrong in
determining the maintenance supplier and the price of
the goods / services needed.
Implementation of Goods Delivery
Contract
After the procurement process generates
selected suppliers, the procurement
committee is responsible for ensuring that
the goods / services received are in
accordance with the order both in the
quantity received, the level of quality, and the
time of delivery.
 Payment and Reporting

New payments can be made if the handover of goods /

services has been declared not to contain problems and
has been authorized by the authorities.
Cheating in Procurement
the following various deviant behaviors are possible.
1. Collaborate with oembeli parties in determining
bid prices
2. In a discriminatory manner increasing technical
standards, so that other suppliers are difficult to fulfill
3. Intermittently interfere with evaluator's work both
in the tender process and in the handover of goods /
services
4. Give a bribe.