Internal Audit DepartmentAudit Program - Purchases

W/P Ref:

Company Auditor:

Date: Auditee:

Serial Audit Procedure Done Comments W/P Ref. Recommendation

Objective 1- General

1 Obtain the policies and procedures for purchasing

2 Obtain a copy of organization’s current 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)

3 Obtain the signature authorization list.

4 Check if the list of approved suppliers is maintained regularly

5 Determine if the function of authorization, ordering and receiving is adequately segregated

6 Verify the implementation of the computer system

7 Verify the implementation of a current vendor performance rating system

8 Determine whether there is a policy with respect to acceptance of gifts from supplier.

9 Check if the purchasing agents or buyers are periodically rotated among purchasing categories to ensure independence

Objective 2- Ordering10 Ensure whether a requisitions logbook is

used to log all requisitions serially.11 Scrutinize requisitions file for any

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Internal Audit DepartmentAudit Program - Purchases

W/P Ref:

Company Auditor:

Date: Auditee:

Serial Audit Procedure Done Comments W/P Ref. Recommendation

duplicate or missing requisitions.12 Check the completeness of the

requisition. All fields should be completed.

13 For each purchase determine whether a requisition is prepared by the requester and approved by the Dept. Manager or committee.

14 Test the efficiency of the processing 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.

19 Ensure that all imported purchases are insured.

20 Select purchases orders and check the authorization to ensure it’s approved by appropriate level of management

21 Investigate long outstanding requisition orders.

Objective 3- Goods Delivery

22 Compare details on the invoice/delivery 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

23 Determine if the receiving person signed

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Internal Audit DepartmentAudit Program - Purchases

W/P Ref:

Company Auditor:

Date: Auditee:

Serial Audit Procedure Done Comments W/P Ref. Recommendation

the delivery note/invoice as evidence of checking items received

24 Ensure the following duties are segregated between ordering & receiving.

25 Check for the date on the invoices should be after that on the requisition, quotation and purchase order

Objective 4- Payment26 Ensure pre-numbered payment vouchers

are used.

27 Ensure payment vouchers are properly supported by original supporting document & approved.

28 Ensure supporting documents are checked & stamped for payment.

29 Ensure the following duties are segregated between:

- ordering, receiving & AP.- Check preparation, payment

approval & signing of checks.30 Ensure payments are made only in the

due date?31 Determine if the advanced payment is

closed right

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