Audit Checklist Sample
This complete sample shows a real procurement audit from start to finish with actual numbers and findings. It covers 50 purchase requisitions tested across procurement planning, vendor selection, purchase order processing, receipt inspection, invoice processing, and contract management. The sample includes real metrics like 98% requisition compliance, 87% competitive bidding adherence, and 94% three-way match accuracy. See how to document 4 findings ranging from high to low priority with specific management responses and implementation dates. The sample demonstrates proper sample selection, testing procedures, control assessments, and professional reporting. Perfect reference for internal auditors running their first procurement audit or any process audit.
Audit Header
- Organization:ABC Corporation
- Process:Procurement & Purchasing
- Audit Date:March 15-19, 2024
- Lead Auditor:John Smith, CIA
- Audit Team:Jane Doe, Mary Johnson
1. Procurement Planning
Requirements Definition
☑ Purchase requisitions documented properly (98% compliance)
☑ Specifications clearly defined (95% compliance)
☐ Cost-benefit analysis performed (65% – needs improvement)
☑ Budget availability confirmed (100% compliance)
☑ Approval hierarchy followed (97% compliance)
Sample Results:50 requisitions reviewed
- Fully compliant: 45
- Minor issues: 3
- Major issues: 2
2. Vendor Selection
Vendor Management
☑ Approved vendor list maintained (Yes – current as of 03/01/24)
☑ Vendor evaluation criteria documented (Yes – Policy P-204)
☐ Competitive bidding for >$10k (87% – 2 exceptions noted)
☑ Conflict of interest declarations (100% on file)
☑ Due diligence performed (95% documented)
Testing Note:3 sole-source justifications lacked proper approval
3. Purchase Order Process
PO Creation & Approval
☑ PO numbering sequential (Yes – no gaps found)
☑ Terms and conditions included (100%)
☑ Delivery dates specified (98%)
☐ Quality requirements stated (78% – improvement needed)
☑ Appropriate approvals obtained (96%)
System Check:SAP workflow functioning correctly
4. Receipt & Inspection
Goods Receipt
☑ Three-way match performed (94% accuracy)
☑ Receiving reports completed (100%)
☐ Quality inspections documented (82% – gaps in documentation)
☑ Discrepancies reported timely (Yes – within 24 hours)
☑ Returns processed properly (100% of 8 returns)
Finding:Receiving dock procedures need updating
5. Invoice Processing
Payment Controls
☑ Invoice approval appropriate (99%)
☑ Duplicate payment controls (System controls effective)
☑ Payment terms optimal (92% taking discounts)
☑ Tax compliance verified (100%)
☐ Expense allocation accurate (88% – training needed)
Metric:Average processing time: 4.2 days (Target: 5 days) ✓
6. Contract Management
Contract Administration
☑ Contracts properly executed (100% of 25 reviewed)
☑ Contract repository maintained (Yes – SharePoint)
☐ Renewal alerts functioning (60% – system issues)
☑ Performance monitoring active (90%)
☑ Amendments documented (100%)
Risk Identified:5 contracts expiring without renewal plans
7. Compliance Areas
Regulatory Compliance
☑ FAR compliance (where applicable) – Compliant
☑ State procurement laws – Compliant
☑ Company policies – 94% compliant
☑ Ethics guidelines – No violations found
☑ Sustainability requirements – 89% compliant
Documentation:All certifications current
8. Performance Metrics
KPI Review (Q1 2024)
- Cost savings achieved: $2.3M (Target: $2M) ✓
- On-time delivery: 91% (Target: 95%) ✗
- Vendor satisfaction: 4.2/5 (Target: 4.0) ✓
- Process cycle time: 8.5 days (Target: 10 days) ✓
- Error rate: 2.1% (Target: <3%) ✓
9. Findings Summary
High Priority
- Finding:Sole-source purchases lacking justification
- Risk:Potential overpayment, lack of competition
- Recommendation:Enforce policy requiring written justification
- Management Response:Will implement additional controls by 4/30/24
Medium Priority
Finding:Quality requirements not consistently documented
- Risk:Receipt of non-conforming goods
- Recommendation:Update PO template to include quality specs
- Management Response:Template update in progress
Finding:Contract renewal tracking inadequate
- Risk:Service interruption””
How the Audit Checklist Sample works
Review all 10 audit sections from procurement planning through final sign-off and conclusion. Study how the sample size of 50 requisitions was determined and selected from the population. Examine the vendor selection criteria including approved vendor lists, competitive bidding thresholds above $10,000, and conflict of interest checks. Follow the three-way matching procedures between purchase orders, receiving reports, and invoices. Note how findings include specific percentages like 65% cost-benefit analysis compliance, dollar amounts like $2.3 million cost savings, and timeline commitments like 30-day implementation deadlines. See the rating methodology showing satisfactory overall assessment with 85% strong controls. Copy the structure for your own procurement or operational audits.
Procurement fraud and waste cost organizations $150,000 per incident on average, with some cases reaching millions. This sample shows exactly how to find the 3 most common procurement weaknesses that lead to losses: missing approvals on sole-source purchases, inadequate vendor due diligence, and weak receiving controls allowing payment for undelivered goods. Companies applying these audit procedures identify $200,000 to $500,000 in annual savings from reduced prices, eliminated duplicate payments, and better contract terms. The sample proves procurement audits deliver 5 to 10 times ROI through fraud prevention and process improvements. Following this methodology helps auditors ask the right questions, test the right transactions, and present findings that management actually fixes.
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