Auditing Procurement & Contracts
Overview
Procurement and contracts are among the highest-risk areas for waste and fraud. This course shows auditors how to audit the full procure-to-pay cycle and contract management, identify red flags of collusion and manipulation, and recommend stronger controls.
Who should attend
Internal and external auditors, procurement and contract staff, and inspectors.
Training methodology
Interactive presentations, practical exercises, case studies, group discussions, role-plays where relevant, and a personal action plan that participants apply in their own work.
Objectives
By the end of this course, participants will be able to:
- Map procurement and contract risks
- Audit procurement planning, tendering and award
- Audit contract execution, variations and payments
- Recognise red flags of fraud and collusion
- Use data analytics in procurement audits
Course outline
Day 1Procurement Risks
- Procure-to-pay cycle
- Key risks
- Regulatory requirements
- Audit approach
- Discussion
Day 2Auditing Tendering
- Needs and specifications
- Tender process
- Evaluation and award
- Conflicts of interest
- Case study
Day 3Auditing Contracts
- Contract terms
- Delivery and acceptance
- Variations and claims
- Payments
- Exercise
Day 4Fraud Red Flags
- Bid rigging and collusion
- Fake suppliers
- Split purchases
- Kickbacks
- Red flag exercise
Day 5Analytics and Reporting
- Procurement data tests
- Supplier analysis
- Reporting findings
- Recommending controls
- Action plan
