Difference between Procurement Auditing and Accounting

Procurement and Audit notes revision

Procurement plays an important role in all businesses. The procurement department is responsible for securing the resources needed the company. Also in charge of spending the company’s capital, a well-run procurement department follows processes to ensure integrity each time a purchase is made. An audit reviews the procurement process to reduce fraud and offer suggestions for improvement. While audit procedures vary among organizations, there are several key procedures included in all procurement audits.
Procurement auditing is an independent examination of the procurement records and procedures of a procuring entity to ascertain or verify whether they give true and fair view and report the findings regarding procurement operations. Financial Accounting is the recording, classifying and summarizing events of an economic entity in order to assist management in decision making.

Differences between procurement audit and accounting

 

Points difference of Procurement Auditing Accounting
1. Definition It    is         the          critical examination of the procurement transactions recorded     in     the procurement records to verify they give       true  and      fair

view

It is recording of all the day to day transactions in the books of accounts leading to preparation                of Accounting records.
2. Nature It is concerned with establishment       of

reliability              of procurement

records.

It is concerned with finalisation                of accounts.
3. Objects The    object certify correctness procurement

records

is to the of The object is to ascertain the trading results.

 

4. Process Audit                     of

procurement process and records

Audit      of      financial

statements              and procedures

5.

Commencement

Procurement   Audit begins             when

Accounting ends.

Accounting commences when book

keeping ends.

6. Scope It depends upon the agreement or upon the provisions of procurement law. It goes             beyond procurement

records.

It involves various Accounting records. It involves maintenance of books of accounts. It does not go beyond books of accounts.

Procurement and Audit notes revision

(Visited 381 times, 1 visits today)
Share this on:

Leave a Reply

Your email address will not be published.