Internal Audit Department Audit Program - Purchases
W/P Ref: Company
Auditor:
Date:
Auditee:
Serial
Audit Procedure
Done
Comments
W/P Ref.
Recommendation
Objective 1- General
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Obta Obtain in the the pol polic icie iess and and proc proced edur ures es for for purchasing Obta Obtain in a cop copy y of of org organ aniz izat atio ion’ n’ss cur curre rent nt signature authority matrix. Ensure that the matrix is up-to-date for authorized personnel, title/position vs. authority, dollar/volume limits, and override procedures (and related down-stream controls; subsequent reporting or escalation to higher-limit personnel) Obta Obtain in the the sign signat atur uree aut autho hori riza zati tion on list list..
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Chec Check k if if the the list list of appr approv oved ed supp suppli lier erss is is maintained regularly 5 D et et er er mi mi ne ne if if th th e fu nc nc ti ti on on of of authorization, ordering and receiving is adequately segregated 6 Veri Verify fy the the imp imple leme ment ntat atio ion n of of the the computer system 7 Veri Verify fy the the imp imple leme ment ntat atio ion n of of a curr curren entt vendor performance rating system 8 Dete Determ rmin inee whe wheth ther er ther theree is is a pol polic icy y with respect to acceptance of gifts from supplier. 9 Chec Check k if if the the purc purcha hasi sing ng agen agents ts or buyers are periodically rotated among purchasing categories to ensure independence Objective 2- Ordering 10
Ensu Ensure re whe wheth ther er a req requi uisi siti tion onss logb logboo ook k is used to log all requisitions serially.
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Internal Audit Department Audit Program - Purchases
W/P Ref: Company
Auditor:
Date:
Auditee:
Serial
Audit Procedure
11
Scru Scruti tini nize ze req requi uisi siti tion onss file file for for any any duplicate or missing requisitions. Chec Check k the the comp comple lete tene ness ss of the the requisition. All fields should be completed. For For each each pur purch chas asee dete determ rmin inee whet whethe herr a requisition is prepared by the requester and approved by the Dept. Manager or committee.
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Done
Comments
W/P Ref.
Recommendation
Test Test the the eff effic icie ienc ncy y of the the proc proces essi sing ng process i.e. from the time the requisition is received until the time the order is processed i.e. compare the dates of the selected purchase orders with those of the purchase requisitions.
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Ensu Ensure re tha thatt all all impo import rted ed pur purch chas ases es are are insured. 20 Sele Select ct pur purch chas ases es ord order erss and and chec check k the the authorization to ensure it’s approved by appropriate level of management 21 Inve Invest stig igat atee long long outst outstan andi ding ng requ requis isit itio ion n orders. Objective 3- Goods Delivery 22
Comp Compar aree detai details ls on on the inv invoi oice ce/d /del eliv iver ery y note to that detailed on the quotations, LPO and requisitions: . Services requested, . Prices, quantities specified, . Supplier details, All information should be the same in respect of the above
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Internal Audit Department Audit Program - Purchases
W/P Ref: Company
Auditor:
Date: Serial
Auditee: Audit Procedure
Done
Comments
W/P Ref.
Recommendation
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Dete Determ rmin inee if the the rece receiv ivin ing g pers person on sign signed ed the delivery note/invoice as evidence of checking items received 24 Ensu Ensure re the the fol follo lowi wing ng duti duties es are are segregated between ordering & receiving. 25 Chec Check k for for the the dat datee on on the the invo invoic ices es should be after that on the requisition, quotation and purchase order Objective 4- Payment 26 Ensu Ensure re pre pre-n -num umbe bere red d payme payment nt vou vouch cher erss are used. 27
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Ensu Ensure re pay payme ment nt vou vouch cher erss are are prop proper erly ly supported by original supporting document & approved. Ensu Ensure re supp suppor orti ting ng docu docume ment ntss are are checked & stamped for payment. Ensu Ensure re the the fol follo lowi wing ng duti duties es are are segregated between: - ordering, receiving & AP. Chec Check k pre prepa para rati tion on,, pay payme ment nt approval & signing of checks. Ensu Ensure re paym paymen ents ts are are mad madee onl only y in in the the due date? Dete Determ rmin inee if the the adv advan ance ced d paym paymen entt is is closed right
