Purchasing: The purchasing function is decentralized with a purchasing agent located in each of the 13 countries
Question:
Purchasing: The purchasing function is decentralized with a purchasing agent located in each of the 13 countries that qualify for food and non-prescription medicine. The Vice-President of Purchasing at headquarters has requested that the 13 purchasing agents purchase 50% of all items from vendors located in the same country as the recipients. The agents operate somewhat autonomously and can sole-source or utilize competitive bids. Local purchases are typically 20-30% higher than obtained through a competitive bid process. The CEO supports this approach since he feels that it establishes good relations with local government officials and business people.
Identify the five major risks in the Purchasing Department. List the controls you would expect to find to mitigate the risks and the audit steps that would be utilized to ascertain that the control mitigates the risk.
| Purchasing | ||||
| Risk At Risk | Control | COSO Classification | Audit Step | |
| 1. | ||||
| 2. | ||||
| 3. | ||||
| 4. | ||||
| 5. | ||||
Expert Answer:
Purchasing Risk At Risk Control COSO Classification Audit Step 1 Lack of standardization in purchasing procedures could lead to duplicate or incompati... View the full answer
