Auditing Unethical & Fraudulent Practices in Procurement Course Outcomes

This program teaches how to:

• Learn about the fundamental concepts that underpin the audit and management of the procurement process
• Identify common fraud related practices
• Understand how to spot unethical dealings
• Evaluate and implement strong internal controls
• Adopt a robust tendering and bidding process
• Instil the right management practices and process for transparency and accountability

Course Agenda:

The course is structured around, and focused on, understanding how to detect and prevent unethical practices in procurement. It is aimed at the internal auditing teams or anyone in a similar function. Each module is underpinned by workshop-based, real-world case studies.
The overall approach is geared towards facilitating and divulging information and skills relevant to the practical needs of the attendees, and includes the following topics:

• • • • Discuss the responsibilities of a typical corporate purchasing group and the purchasing business cycle.
      • Overview of the Purchasing Cycle
      • Understand who is involved (internal and external)
      • Identify differences in the purchasing cycle depending on the industry and company size

• Purchasing Fraud Schemes:
  • Classifications of purchasing fraud.
  • Corruption.
  • Asset Misappropriation.
  • On and off-book.
  • Purchasing fraud schemes
  • Purchasing fraud statistics and industry comparisons.
• Risk-based Strategy to Fight Purchasing Malpractice:
  • Purchasing fraud risk assessment
  • Fraud opportunity reduction through purchasing process improvement
  • Internal controls to reduce purchasing fraud risk.
  • Proactive risk-based auditing to detect purchasing fraud.
  • Investigations of purchasing frauds identified.
• Internal Controls over Purchasing:
  • Assess the level of purchasing fraud risk at your organization, including industry and geographic considerations.
  • Define relevant internal control practices (e.g. explicit policies, segregations of duties, vendor selection, and independent centralized procurement group).
  • Review policies, processes, and approval limits.
  • Exceptions to normal protocol (e.g. sole sourcing decisions and bid waivers).
  • Vendor monitoring and evaluation criteria.
• Purchasing Fraud Detection Processes:
  • Risk-based purchasing fraud detection audits.
  • Using CAATS to detect purchasing fraud.
  • Tips and complaints.
  • Soliciting feedback from management, employees, the public and vendors (current, former and rejected).
  • Vendor monitoring.
  • Monitoring of major contracts.
• Detecting Particular Purchasing Fraud Schemes:
  • Scheme-based purchasing fraud symptoms and detection methods.
  • Special considerations for off-book purchasing fraud schemes.
  • Special considerations for contract bidding schemes.
  • Internal Audit’s Role in Purchasing Fraud Investigations.
  • Purchasing fraud investigation techniques and resources.
  • Enterprise-wide business process.