You have just received the "following draft audit report that was prepared by one of your staff auditors.

1 Audit of the Purchasing Department 2 Introduction 3 The purchasing department is responsible for 4 all procurements except those involving 5 executive approval. During the past months, 6 purchasing issued 19,736 purchase orders for 7 a variety of products. Our audit covered 8 only 4 of the 12 separate product classifi¬ cations for which purchasing is done.
9 Purpose and Scope 10 We made our audit to determine whether 11

a. Competitive bidding was employed.
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b. Purchase orders were being approved at 13 an appropriate level.
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c. Buyers were following up appropriately.
15 Findings and Opinion 16

a. New procurement procedures prescribe an 17 adequate control system which is designed to 18 require supervisory review of all bidders’
19 lists to see that all qualified suppliers 20 are permitted to bid.
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b. We found that 43 purchase orders for 22 more than $25,000 had been approved only by 23 the buyer. We reported this to the purchasing agent.
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c. Follow-up action on late shipments has 25 been ineffective because shipments continue 26 to be received late.
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d. Based on a random sample of 200 items, 28 there shouldn’t be more than a 2% error rate 29 in the purchase orders issued.

30 --------------------(Signed) Auditor.

Required:
Evaluate the quality of the report and recommend improvements therein. Please use the following format.

Transcribed Image Text:

Line Weakness Number in Report Improvement Suggested