Qualified Report

In the context of procurement audit, this is a report given by the auditor when he is not satisfied with explanations and information given, or thinks processes and activities are not in compliance with legal provisions and regulations governing public procurement.

Consequences of unqualified report
1. Contained relationship with procuring entity i.e. ability of directors to ensure sufficient use of resources under their stewardship.
2. Directors can get satisfied that they have complied with statutory representation and legal requirements in their operation.
3. Users of reports get more confidence of directors about their capability in running the procuring entity affairs.
4. The procuring entity will be able to sustain good business relationships with customers and suppliers.
5. The procuring entity will be able to continue as a going concern because of the ability to maintain reputation attached to stakeholders.

Consequences of a qualified report
1. It may lead to non-renewal of the directors‘ terms of office.
2. May lead to procuring entity being put under receivership/liquidation.
3. Can lead to appointment of investigative agencies to make into the public entities affairs.
4. Can lead to sacking/suspending of management and directors of the procuring entity and any staff who may be found culpable of breaching procurement law.
5. Penalties and fines for breach of regulation and procurement law including jail terms for those culpable.

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