Public Procurement Practice AUDITS

Flashcards covering key concepts from the Public Procurement Practice AUDITS notes, including audit types, preparation, definitions, Element 1 foundations, policies, audit focus areas, GPRA requirements, and post-audit actions.

What are the three primary audit types?

Compliance, financial, and performance audits.

Why should procurement engage in self-assessments before an audit?

To ensure up-to-date documents and data are readily available and to promote professional stewardship of public funds and best value.

How is an audit defined in Public Procurement Practice?

A detailed review and examination of documents and business processes, resulting in a detailed report; it can be a formal examination of financial accounts or other operations.

What is Element 1 in relation to audit readiness?

The foundation is knowledge of and adherence to laws, regulations, policies, procedures, and processes to ensure economical, efficient, effective, and compliant operations.

During an audit, what role may Procurement play?

The direct focus of an audit or providing supporting documentation and data for auditing another department.

What must Procurement do when spending federal dollars?

Comply with the terms, conditions, and requirements of the grant.

How is the success of the procurement function measured?

By outcomes related to compliance, economy, efficiency, and effectiveness.

What should policies and procedures address for audit readiness?

Compliance with laws, regulations, and trade agreements; execution of procurement authority; ethical conduct; social, economic, and environmental goals; fair and open solicitations; publication of information; records retention and information management; disaster recovery plans.

Give an example of a compliance audit question.

Are policies, procedures, regulations, trade agreements, and laws being adhered to in procurement processes?

What is a financial audit?

An audit to determine whether funds are properly accounted for, verify the accuracy of financial statements, and ensure transactions are recorded correctly.

What is a performance audit?

A systematic and objective assessment of management and activities to achieve outcomes efficiently, economically, and effectively against criteria.

Name several focus areas for state and local audits.

Grants and contracts, cooperative agreements, services, construction, emergency and sole source purchases, programs, procurement cards, e-procurement, training, and sustainable procurement.

What is a single audit in the federal context?

One audit of all federal programs rather than separate audits for each program.

What does GPRA 2010 require Procurement to develop?

A performance plan with indicators to measure progress, including customer service, efficiency, and outcomes.

What is Element 6 about after an audit finds issues?

Dedicating time and staff to implementing changes, sharing findings with departments, and creating action plans with deadlines.

What steps should be taken when an audit is scheduled?

Communicate expectations to procurement staff, train staff on interaction with auditors, appoint a single point of contact, return documents to designated locations, provide clean copies, review unresolved findings, and update procedures and websites.

What differences exist between internal and external audits?

Audits differ in objectives and due to public/media scrutiny; external audits may be more challenging with greater pressure and public findings.

What is the role of collaboration during an audit?

Procurement may need information from other departments; establish responsibilities; educate auditors about procurement practices and direct questions to appropriate experts.

What documentation should be maintained on a daily/weekly basis?

Solicitations, contracts, addenda, evaluation processes, and communications such as correspondence, phone records, newsletters, and meeting notes.

Why is regular self-assessment important for governance, risk management, and internal controls?

It supports governance, risk management, and internal controls while improving economy, efficiency, and compliance and prepares for audits.