Compliance/ Operational Audit

This involves a systematic review of the public entities procurement activities for the purpose of assessing the efficiency, economy and effectiveness of procurement practices and controls associated with procurement activities to determine the degree of adherence to procurement laws, regulations and authorities in meeting the entities objectives and missions.

It includes a review for management control system for any activity, process, and function of identification (risk assessment) of factors that may hinder the efficiency and effectiveness of the function. Its main objective is to determine whether procedures, processes and documentation for procurement contracting are in accordance with the provisions of the relevant procurement laws and regulations.

Purpose of this Audit

  • Assess performance.
  • Identify opportunities for improvement of the procurement process.
  • Develop recommendation for improvement of the procurement process.
  • Verify compliance of operations with applicable laws and regulations.

How to achieve objectives of the operational audit

  • Reviewing and appraising the soundness, adequacy and application of operating controls for the procurement process.
  • Ascertaining the extent of compliance with established policies, plans or procedures.
  • Ascertain reliability of reports issued to management.
  • Appraising the quality of performance in carrying out assigned responsibility.
  • Recommending opportunities for operational improvements.
  • Accounting for safeguarding assets.
  • Ascertaining financial compliance.
  • Ascertaining economy and efficiency in operations i.e. if the procuring entity is using resources in an economical and efficient manner and determine the cause if any uneconomical practices and inadequacy in the administrative procedures and
    organisation structure.
  • Assessing program results, ascertaining desired benefits are being achieved, objectives met and management considered alternatives that can yield results at lower costs.
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