What is the main purpose of a procurement audit?

Ideally, a procurement audit systematically reviews an organization’s procurement processes and related activities. An ideal procurement audit evaluates a procurement function’s compliance, effectiveness, efficiency, risk management, transparency, and accountability.

The main objectives of a procurement audit are to help ensure that:

1. All procurement activities abide by the established procedures, policies, guidelines, laws, and contractual terms.
2. The procurement function is achieving its strategic and business objectives through a procurement strategy, such as maximizing cost savings, improving supplier relationships, and more.
3. All resources are utilized optimally with a streamlined process and zero waste or delays.
4. The current risk strategy is capable of identifying, assessing, and mitigating potential procurement risks effectively.
5. All procurement decisions and transactions are transparent, justifiable, and well-documented.