Auditing the Purchasing Function - OAP302WEB

Auditing the Purchasing Function - OAP302WEB

Auditing the Purchasing Function - OAP302WEB
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Upcoming Dates & Locations

Virtual
Sep 1st, 2021

Auditing the Purchasing Function - OAP302WEB

Overview

Purchasing activities typically represent a large percentage of expenses and take many forms in the procurement of goods, services and supplies required to meet everyday business needs. These items must be acquired efficiently and at an optimal price to keep production and service activities in motion without disruptions. This webinar covers the risks inherent in the procurement function, the strategic alliances that are often made, the information systems used, the management processes it affects and the bidding, vendor selection and contracting processes.


Who Should Attend

Staff and Senior Auditors, Internal and External Auditors, Audit Managers and Purchasing personnel.


Prerequisites

  • None

What You’ll Learn

You will learn how to perform value-added audits of the purchasing function from the identification of the objectives, best practices, key risks, essential controls, and test procedures.


Objectives

Introduction:

  • The strategic importance of the procurement function and purchasing activities
  • The advantages and potential problems of different procurement strategies
  • Techniques to improve the efficiency, economy and effectiveness of purchasing activities

Entity Level Controls and Performance:

  • Their definition, types, characteristics, strengths and weaknesses
  • Organizational structure, strategic objectives, people, processes, risks and controls
  • Learn how to assess the presence, condition and quality of procurement entity-level controls and the process overall
  • Balancing the procurement audit from a strategic and operational perspective

Bidding:

  • Examination of the most commonly used and effective techniques to evaluate the bidding process
  • Pros and cons of different techniques
  • Competitive and sole-provider mechanisms

Data Analytics:

  • The benefits of using data to assess risks and the quality of internal controls
  • Ways of obtaining relevant data and using it to assess the performance of the procurement function
  • Using data to identify questionable practices

Procurement Cards:

  • Key risks and controls
  • Cardholder setup, purchasing limits and MCC controls
  • Reconciliations and variance analysis
  • Common abuses and how to prevent and detect them

Contracting:

  • Ensuring the transparency and fairness of the process
  • Vendor selection and management
  • Vendor list maintenance
  • Assessing the controls of third parties: the right to audit and SOC reports
  • Managing purchase orders, work orders, contracts and service level agreements

Vendor Performance:

  • Assessing the viability and competence of suppliers
  • Vendor and contract performance monitoring
  • Criteria for effective key performance indicators

The Purchasing Cycle:

  • Risks and controls related to budgeting, purchase orders and requisitions
  • Examining RFI, RFP and RFQ
  • Using EDI, barcoding and RFID technologies

Purchasing Fraud:

  • Common purchasing and contract frauds schemes by employees and suppliers
  • Preventing abuse and detecting anomalies
  • Data analytics and helpful monitoring procedures
  • Techniques to prevent corruption, asset misappropriation, purchasing and contract fraud

Audit Programs:

  • Creating a risk assessment, risk matrix and audit program
  • Key considerations during the planning, fieldwork and reporting phases
  • Examination of the most commonly used and effective tools to evaluate the procurement function
  • Pros and cons of different tools and techniques

Why You Should Attend

You should attend because Purchasing plays a critical role in every organization’s ability to meet its goals and objectives, yet it also constitutes a high-risk function.

ACI Learning is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

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