1. The Title – The procurement audit report must have an appropriate title for the assignment undertaken.
2. Introductory Paragraph – The opening statement that identifies the procuring entity whose procurement systems and processes have been audited.
3. Addressee – Should be addressed to the appropriate agencies on whose behalf the audit is being conducted.
4. Objectives, Scope and Methodology – Auditor should explain the aspects of the performance examined, the depth and coverage of work conducted.
5. Findings – Auditor should report significant findings developed in each audit objective. They should include sufficient and relevant information to promote adequate understanding of matters reported. The auditor should also report appropriate background information that the readers need to understand the findings.
6. Conclusions – Auditor should report conclusions as called for by the audit objectives. The strength of the auditor‘s conclusion depends on the persuasiveness of evidence supporting the findings. The auditors should conclude on the presence and adequacy on internal control observed or absence of internal controls.
7. Recommendation – Auditor should make recommendations on the potential for improvement on operations and performance supported by the findings. Recommendation to effect compliance with laws and regulations and improve internal controls should be made when instances of non-compliance are noted or significant weaknesses of control are found.
Constructive recommendations should be made to encourage improvements. They are constructive when:
- Directed towards solving causes of problems.
- They are action oriented and specific.
- They are addressed to parties that have the authorities to act.
- They are feasible and to the extent practical.
- They are cost effective.
8. Opinion – The auditor‘s report should clearly state the auditor‘s opinion on whether the public entities procurements are in compliance with the legal requirements i.e. internal controls for adequate, efficient operations.
9. Name, Signature and Date – Report should be signed in the name of the audit firm, personal name of the auditor or both as appropriate.