Question

What is your opinion on this statement based on the idea of what audit steps would you perform to evaluate the contract bidding process?

While auditing an organizations contract bidding process, I would make a preliminary survey, plan the audit approach, and establish audit objectives. In my preliminary survey, I would interview key personnel who are involved in the procurement process, such as the chief procurement officer or similar staff, review the purchasing policy of the organization, and determine what kind of reports are received by the key managers. I would then plan the audit approach and determine which procurement units of the organization to focus on and collect samples from. I would then establish my audit objectives and, according to our text, perform the audit steps in order to determine the following:

If the managerial environment and management control system are sufficient. If there are impediments to achieving procurement objectives during the specification preparation phase of the procurement process. If the bid and proposal procedures maximize competition and give awards to the lowest responsible and responsive bidder or to the best proposer. If contract terms hold contractors accountable for delivering products and services as required by the organization. If receipt of and payment for services and products met both the time and quality requirements set forth in contract specifications. And if concession contracts were awarded after obtaining reasonable competition and were administered efficiently.

Answer 1