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Article: Auditing the purchasing function.
- Article from:
- Internal Auditor
- Article date:
- December 1, 1997
- Author:
CopyrightCOPYRIGHT 1997 Institute of Internal Auditors, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Just think about it: purchasing may represent half of all organizational expenditures. A look at current practices in purchasing audits reveals how internal auditing is covering the big-spending function.
The purchasing function acts as the primary agent for acquiring goods and services used in an organization, and the price tag for inefficiencies and flawed processes can be steep. In fact, purchasing department effectiveness and economy are critical, since there is a direct connection to the bottom line of any organization, representing half of all expenditures. In addition, the purchasing function can be especially vulnerable to fraudulent transactions because it ...