Compare purchase order prices with vendor catalogs. Variances of significant differences should be investigated.
Sort payment file by vendor number and amount. These should be investigated to determine if there are duplicate payments for the same invoice
Spot check receiving. Periodically, examine products being received by the company. This verifies the items received have been ordered, and are consistent with what a normal business orders.
Probe for favored vendors. Purchase order file sorted by vendor number. The frequency of vendor orders should be accumulated and ranked. Vendors receiving large amounts of orders should be investigated to determine that price and service offered is competitive with other vendors
Validate adequate segregation duties. Document the duties of individuals and analyze the results to make sure adequate segregation exists.
Compliance to procedures. Select a random number of purchase orders to verify that all of the appropriate procedures were complied with in processing and recording the purchase order.
Verify that the requestor has proper authorization to order the products.
Check the vendor invoice for the following: Clerical accuracy, Proper dates, Propriety of account distribution, Appropriateness of purchase.
End-of-month liability analysis. Items entered as liabilities immediately following the end of the accounting period should be examined to determine whether they have been recorded in the proper accounting period.
Purchase needs audit. Objective is to determine whether the item purchased already exists in the company and could be used without repurchasing