The process of procurement of goods and services (PBJ), often faced with various problems. Such as mismatch of data with goods or services to the lack of competence of the procurement committee. It is in this context that an audit of the procurement of goods and services is needed.
The audit or inspection process can be a wise step for the company to minimize negative risks that come in the future. This process is not just a work formality, but a strategic part that can save the company.
What is a goods and services procurement Audit?
Audit of procurement of goods and services is an examination of the process of procurement of goods and services. The object of this examination involves not only the product or service to be provided to the customer, but also human resources (HR), relevant documents, to the procurement process.
The person in charge of the audit process can involve auditors from the financial and development Supervisory Agency (BPKP), internal auditors, nor external auditor of the public accounting firm (KAP).
Audit team must consist of people who are free of interest to the audit firm. This is done so that the audit process produces an objective, fair, unbiased, and credible assessment.
What is the main purpose of the Audit in the procurement of goods or services?
The audit process of procurement of goods and services is carried out to ensure probity (honesty or integrity) PBJ. in addition, some other objectives to be achieved through this process are the following.
1. Ensure compliance with policies and regulations
The audit process verifies the procurement process of goods and services with applicable rules and policies. These checks include potential ethical violations, corruption, and conflicts of interest. Verification is carried out to prevent legal problems, sanctions, and fines arising from violations.
2. Increase effectiveness and efficiency
An examination is also carried out of the procurement process itself. This process evaluates whether the procurement committee has used the right resources, the supplier selection process is efficient, and meets the needs of goods and services at competitive prices.
Assessment allows the auditor to suggest improvements and improvements to the company so that the procurement process can work more optimally.
3. Identifying Risks
Audit of procurement of goods and services is also carried out to prevent the company from negative risks that could potentially arise in the future.
Therefore, auditors whether the procurement process is at risk of fraud, non-compliance, to a decrease in the quality of goods or services.
4. Assess the quality and performance of suppliers
The goods and services procurement Audit not only examines the procurement team, the goods or services provided, but also the performance of the supplier and the quality of his goods or services. The Auditor provides an assessment of the supplier's work during the contract until its compliance with the contract.
5. Recommend Improvements
In the PBJ audit process, the auditor can recommend improvements directly or during the procurement process and at the end of the assessment.
These recommendations include improvements to internal controls, improved rules and policies, to more effective and efficient procurement measures.
Why Is A Procurement Audit Important?
Procurement of goods and services plays an important role in national development and regional and Central Economic Development.
But unfortunately, procurement projects that are often of great value are vulnerable to being targeted by corruption. Here are some reasons that make an audit of procurement of goods and services important.
- Increase transparency and accountability
- Preventing corruption
- Optimizing budget usage
- Ensure the procurement process is in accordance with regulations
- Ensure customer satisfaction
- Ensure data-driven decisions
- Improve processes and procedures
- Support managerial decisions
Examples of cases of Audit of procurement of goods and services
To understand how the audit of the procurement of goods and services is carried out, consider the example of the case of the procurement of financial application systems in the GenZ company.
1. Problems
- There were indications that the proposal did not meet the needs of the institution, but still passed to the final stage of selection.
- There is a potential conflict of interest because one of the procurement committees has worked at the audited company.
2. Audit implementation
- Auditors review RUP documents, RKS, evaluation criteria, and vendor track records.
- Interview with the procurement committee to make sure there is no partiality.
- Auditors rechecking the suitability of technical specifications to the needs of the agency and tracing the administrative and technical assessment process.
3. Audit results and follow-up
- Proven there are errors in the process of technical assessment and violations probity related potential conflicts of interest.
- The Vendor is disqualified and the evaluation is repeated according to the rules.
- Agencies save up to 10% on costs and acquire more competent providers.
This case study shows that audits can ensure the procurement process is transparent, conflict of interest-free, and results in the selection of appropriate and efficient vendors.
Procurement Audit Implementation Process
Audit implementation process procurement of goods and services goes through several stages as follows.
1. Audit Planning
Before conducting an assessment of procurement activities, auditors plan the audit process that will take place.
This stage includes determining the scope and objectives of the audit, identifying the main risks that could arise in the procurement process, and preparing an audit work plan.
2. Audit Implementation
Subsequently, auditors collect relevant procurement data and documents. As a verification step for procurement documents, auditors can also conduct interviews with related parties and direct observation during the procurement process.
3. Reporting Of Audit Results
After the audit process is complete, the auditor prepares audit report. The report contains findings, analysis, and recommendations supported by credible evidence.
The audit report can then be submitted to the relevant authorities as a basis for making decisions or next steps.
4. Follow-Up
The last stage that the auditor performs is follow-up. The Auditor ensures that the audit recommendations or suggestions are carried out properly by the company being audited.
Closing
Audit of procurement of goods and services can be a solution step for companies or related agencies to maximize resources and costs.
The evidence gathered during the audit process and the integrity of the audit results enable the company to make objective and measurable decisions.
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