OBJECTIVES OF REVIEW OF INTERNAL CONTROL OVER PURCHASING OPERATIONS :
The objectives of review of internal control system includes to ascertain
1. Whether controls are in place in the process to ensure that accountability is established as early as possible at all points along with the accountability chain.
2. Whether segregation of duties, risk mitigating controls, exists within transaction processing authorization. Whether separation of duties exists between various types of transaction processing (e.g., procurement, accounts payable, disbursements).
3. Whether the quantity and quality of goods and services received is documented and agrees with the requisition and performance expectations such as service level agreements, contract terms, and vendor performance.
4. Whether transactions are properly verified before disbursement, transactions and activities are properly authorized, transactions and events are properly recorded.
5. Whether accountability for refunds and credits are maintained. Whether staff understands their duties, responsibilities, and accountabilities.
6. Whether procurement practices and procedures are documented, and in compliance with central and state laws and other requirements such as contract terms and conditions. Procurement records for authorizations and transactions are maintained in accordance with established requirements.
7. Whether accounting records are protected from theft, obsolescence, or destruction. Whether assets are safeguarded from loss through watchful and responsible care and reconciliation functions