© Matti Mattila, CPFA, CISA, CIA

Detailed Control Objectives

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The following detailed control objectives can be derived from the main control objective (concerning identification of procurement needs [25]):
(1) Procurement needs are identified in a professional manner taking into account factors that have known effects on these needs. The following things are known:
(a) reasons, urgency and necessity class of the procurement;
(b) compatibility of the commodity with the entirety where the commodity is planned to be a part;
(c) technical specifications necessary in writing an order or an invitation for tenders;
(d) supplies, know-how and other such factors for making full use of the commodity;
(e) consumption of the commodity during a period [e.g. a year];
(f) optimal amount of commodities for an order;
(g) desired amount of commodities for the present order.
(h) relevant rules and plans, including a budget, and alternatives for making the procurement.
(2) Needs are identified in accordance with a documented procedure (instructions), i.e.
(a) the person identifying the procurement needs is acting in compliance with the rules and plans;
(b) he/she is authorized for identification of procurement needs [in the case in question];
(c) identification, including its documentation, is checked and [when needed] accepted by an authorized person.
(3) Information about the steps (1) and (2) above is available for control as well as the problems encounters, including e.g.
(a) when were the needs identified;
(b) who identified the needs; how is he/she ranked in terms of expertise and knowledge of business and relevant plans of an organization;
(c) the integrity, logicality and other checks of the submitted information.


[25] The main control objective: ”Procurement needs are identified accurately, also examining them in a broader context, according to instructions, and there is information to what degree these things have taken place”.