---
title: "Procurement audits"
subject: "ICT Project Management"
chapter: 13
key: "semester_7/ict_project_management:procurement-audits"
source: https://www.bctengineer.com/q/semester_7/ict_project_management/procurement-audits
site: BCT Engineering
---

# Procurement audits

ICT Project Management · Chapter 13: Project Procurement Management

- Asked in: year not given
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/ict_project_management/procurement-audits
- Whole chapter: https://www.bctengineer.com/md/semester_7/ict_project_management/chapter-13

## Question

What do you mean by procurement audits?

## Short answer

A procurement audit is a structured review of the procurement process from planning through closure, used in Close Procurements. It identifies successes and failures to improve future procurements, verify compliance with policies and laws, and capture lessons learned.

## Answer

A **procurement audit** is a structured review of the procurement process, from Plan Procurement Management through Control Procurements. Its objective is to identify successes and failures that warrant transfer to other procurement contracts on the project or to other projects within the organisation. It is a tool of **Close Procurements** (and also Control Procurements).

#### Purposes
- Check that procurement followed laws, policies and procedures (e.g. Public Procurement Act and Rules for public bodies).
- Verify fairness, transparency and competition in sourcing.
- Assess value for money and cost control.
- Confirm that contract terms were met and that payments were correct.
- Identify weaknesses and risk of fraud, errors or favouritism.
- Capture lessons learned for future procurements.

#### What is examined
| Area | Items |
|---|---|
| Planning | Make-or-buy analysis, SOW, contract type |
| Solicitation | Advertising, bidder conferences, documents |
| Selection | Evaluation criteria applied, scoring records |
| Contract | Terms, approvals, signatures |
| Administration | Performance reviews, change orders, claims |
| Payments | Invoice checks, retention |
| Closure | Acceptance, records, archive |

#### Steps
```text
Plan audit -> Collect records -> Review and test
   -> Report findings -> Corrective action -> Follow-up
```
1. Define the scope, criteria and team (internal or external auditors).
2. Collect procurement files, contracts and correspondence.
3. Compare actual practice with policies and law.
4. Interview staff and sellers where needed.
5. Report findings with recommendations.
6. Track corrective actions; update OPA.

#### Benefits
- Prevents irregularities and improves accountability.
- Improves procurement processes and templates.
- Strengthens trust of funders and stakeholders.
- Useful for donor-funded and government projects.

**Example:** Audit of a district network procurement finds that two bids were accepted after the deadline and that scoring sheets were missing; the audit recommends strict bid-opening records.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. What is the objective of a procurement audit?
   A. Identify successes and failures worth transferring to other contracts and projects
   B. Select a seller
   C. Write the SOW
   D. Advertise the tender
   Answer: A. A procurement audit reviews the process from planning through control to find lessons for others. (Key point: Objective)

2. Which is a purpose of procurement audits?
   A. Check compliance with laws and verify fairness and transparency
   B. Increase the seller's price
   C. Replace evaluation criteria
   D. Avoid documentation
   Answer: A. Audits check compliance, fairness, value for money, payments and risk of fraud or favouritism. (Key point: Purposes)

3. A procurement audit is a tool of which process?
   A. Close Procurements (and also Control Procurements)
   B. Plan Procurement only
   C. Conduct Procurements only
   D. Plan Risk Management
   Answer: A. It is a tool of Close Procurements and also Control Procurements. (Key point: Process tool)

4. What is the correct order of audit steps?
   A. Report findings, plan, collect records
   B. Plan audit, collect records, review and test, report findings, corrective action, follow-up
   C. Follow-up, plan, report
   D. Collect records, close, plan
   Answer: B. Define scope and team, collect files, compare with policy, report, track corrective action. (Key point: Audit steps)

## Related in ICT Project Management

- [Risk audits](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Arisk-audits) — ICT Project Management, chapter 12
- [Project procurement management](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aproject-procurement-management) — ICT Project Management, chapter 13
- [Contract procurement performance review](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aprocurement-performance-review) — ICT Project Management, chapter 13

## Related in other subjects

- [Value engineering in material procurement](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Avalue-engineering-procurement) — Construction Management, chapter 3, asked 3×
- [Meaning of purchasing and procurement](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Apurchasing-procurement) — Organization and Management, chapter 6
- [Procurement management processes in construction](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aproject-procurement-management-processes) — Project Engineering, chapter 4