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Procurement audit checklist template

Procurement audit checklist template

A procurement audit checklist is a detailed guide designed to evaluate and improve the procurement processes within an organization. It focuses on key areas such as supplier selection and evaluation, ensuring a consistent and fair assessment of supplier performance and reliability.

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Procurement audit checklist template

A procurement audit checklist is a detailed guide designed to evaluate and improve the procurement processes within an organization. It focuses on key areas such as supplier selection and evaluation, ensuring a consistent and fair assessment of supplier performance and reliability.

Use this template with Lumiform

The Lumiform application helps frontline teams uphold internal standards effortlessly.
  • Customize this template or build your own
  • Fill out templates via mobile app
  • Assign and track corrective actions
  • Get reports and analyse your data
Prices start from ░░░ per month
Book a demo
Learn more
or Download template as PDF

Our procurement audit checklist template helps you systematically evaluate your procurement processes for compliance and efficiency. You’ll identify potential risks, documentation gaps, and areas for improvement across your entire procurement cycle – from vendor selection to contract management.

According to a study by World Commerce Contracting, organizations can lose up to 9.2% of their annual revenue due to poor procurement practices and lack of contract management. This template gives you a structured framework to catch these issues before they impact your bottom line, ensuring your procurement practices align with both internal policies and external regulations.

Related categories

Preview of the template
General Information
Audit Date
Auditor Name
Company Name
Procurement Policies and Procedures
Procurement policies and procedures are documented
Policies cover key areas (e.g. sourcing, contracting, payment)
Policies are regularly reviewed and updated
Procurement Process
Purchase requisitions are approved by authorized personnel
Competitive bidding process is followed for purchases above a certain threshold
Vendor selection criteria are defined and followed
Purchase orders are approved by authorized personnel
Receiving and inspection procedures are in place
Payments are made only after goods/services are received and approved
Procurement Documentation
Purchase requisitions are properly documented
Competitive bidding documents are maintained
Vendor selection justifications are documented
Purchase orders are properly documented
Receiving reports are properly documented
Payment records are properly documented
Procurement Risk Management
Procurement risks are identified and assessed
Risk mitigation strategies are in place
Procurement fraud risks are considered
Compliance and Regulatory Requirements
Procurement activities comply with relevant laws and regulations
Procurement records are maintained as per retention policies
Continuous Improvement
Procurement performance is regularly monitored and reviewed
Improvement opportunities are identified and implemented

Frequently asked questions

What are the key components of a procurement audit checklist?

A procurement audit checklist should cover procurement planning, vendor selection processes, contract negotiation practices, purchase order controls, financial oversight, ethical compliance, supplier relationship management, also documentation requirements. Each component helps you systematically evaluate different aspects of your procurement process to identify improvement areas.

How can I improve vendor relationships through procurement audits?

You can improve vendor relationships by using procurement audits to regularly assess supplier performance and reliability. This process helps you identify strengths and weaknesses in your partnerships, allowing you to address issues proactively and foster stronger, more collaborative relationships that benefit both parties.

What are common red flags to look for when using a procurement audit template?

When using your procurement audit template, watch for frequent emergency purchases bypassing normal controls, consistent use of the same vendors without competitive bidding, contract amendments that significantly increase costs, missing documentation, and unusual payment patterns that could indicate kickback schemes.

How do you customize a procurement audit checklist for your industry?

Customize your procurement audit checklist by adding industry-specific regulatory requirements, typical procurement risks in your sector, and specialized contract terms relevant to your supply chain. You should also adjust evaluation criteria based on your organization’s size, procurement volume, and internal control environment.

This template, developed by Lumiform employees, serves as a starting point for businesses using the Lumiform platform and is intended as a hypothetical example only. It does not replace professional advice. Companies should consult qualified professionals to assess the suitability and legality of using this template in their specific workplace or jurisdiction. Lumiform is not liable for any errors or omissions in this template or for any actions taken based on its content.