As a GAO auditor, you have been assigned to perform an audit of a Department of Education School Breakfast Program. The Department had instructed all schools to order commodities in economical institutional-size packages to the extent possible. In eight of the 22 schools covered by the review, you have found purchases in smallersize packages. You estimate that additional costs total $10,000 per month, per school.

Considering the escalation in food prices, it was evident that bulk purchasing was essential due to favorable quantity discounts. But Department of Education officials stated that although bulk purchases were encouraged, they were not mandated.

Required:

1. What type of audit is contemplated by the description above? Explain.

2. Draft a paragraph summarizing the recommendations you would include in a report to the Department of Education.