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The ECAR model can be applied in building, revising or assessing internal control of a process.
The example here deals with building internal control in a procurement process.
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Main Control Objectives
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In a procurement cycle the following phases can be identified:
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identification of procurement needs
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| (2) |
preparation of a procurement
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| (3) |
preparation of a procurement decision
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| (4) |
making a procurement decision
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| (5) |
monitoring the delivery and reception of commodities
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| (6) |
processing the bill
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| (7) |
entering the transaction information onto the accounting system
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| (8) |
payment of the bill [24].
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The main control objective in the identification of procurement needs could be stated as follows:
”Procurement needs are identified accurately, also examining them in a broader context,
according to the instructions, and there is information available to judge
to what degree this has taken place".
The objective gives origin to detailed control objectives presented next.
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[24]
The key things to be controlled in various phases of procurement are shown in the table below.
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