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The control objectives (in determination of procurement need) are due to be achieved as follows.
The internal control element concerned is mentioned in curly brackets.
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| (1) |
Procurement proposals are made on a form, updated version of which
is continuously available in a [computerized] procurement system.
The form serves also as a checklist (criteria) ensuring
that all essential matters are considered in every acquisition {accounting systems}.
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| (2) |
An authorized person fills in the form.
Only persons with adequate professional competence in determining procurement needs are authorized.
In order to fill in the form the employee has to log on the procurement system {control}
and be authorized to fill in the form {control}.
These steps are recorded in a log {accounting systems}.
The log is analysed afterwards on a regular basis {control}.
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| (3) |
The form is filled in within the procurement system.
The system has functionality to show information about products
and their suppliers, transactions and their initiators, etc.
as well as appropriations for procurement and history
and other facts about their use {accounting systems}.
When comparing that information with the findings of his own
the person filling in the form is able to make [unconsciously]
an assessment about the effectiveness and efficiency of the control
within the procurement process,
and how to improve the procurement system or function {determination of risks}.
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| (4) |
The procurement system checks the logicality and integrity of the input data {control},
and provides the relevant feedback, including instructions when needed {accounting systems}.
When all the checks of the system have been passed
the validated data is written into a file {control}.
The act of writing the, or inability to write it (error message),
is written in a log {accounting systems}.
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| (5) |
The data is now available to the supervisor of the employee through the procurement system.
Only authorized persons have a possibility to learn about the proposal and interfere with it {control}.
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| (6) |
The supervisor of the maker of the procurement proposal receives a message about the proposal,
if he/she has not reacted to it within fixed period {control}.
The supervisor checks the proposal, as required by the rules,
and accepts or rejects it {control}. His/her measure is logged {accounting systems}.
When viewing the data (input through the form)
the supervisor is shown remarks by the procurement system,
when such remarks exist {accounting system}.
This information helps the supervisor in identifying risks in the procurement,
and in analysing and evaluating those risks,
and in forming an opinion about them {determination of risks}.
Depending on the opinion the supervisor may e.g. ask additional information
from the warehouse (ad hoc control).
Would the procurement exceed a certain expenditure level
the supervisor submits the procurement proposal further to his own superior for acceptance {control}.
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