Which of the following observations should be of concern to an IS auditor in the fieldwork stage of a procurement audit?
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A. B. C. D.A.
In a procurement audit, the IS auditor would be interested in evaluating the procurement process of an organization to ensure that it is efficient, effective, and secure. In the fieldwork stage of a procurement audit, the auditor would be examining the procurement process in detail, which may include analyzing documentation, interviewing employees, and testing controls.
Of the options provided, the observation that should be of concern to an IS auditor in the fieldwork stage of a procurement audit is option C - Purchase commitments are made prior to requisitions being approved.
Here's why:
A. Requisitions are being processed by the finance team: This observation alone may not be of concern to an IS auditor as it is normal for the finance team to be involved in processing requisitions, particularly in large organizations. However, the auditor may evaluate the segregation of duties within the procurement process to ensure that the finance team's involvement is appropriately controlled and that there are no conflicts of interest.
B. The purchase requester receives notifications of goods delivery: This observation may be a normal part of the procurement process, particularly in cases where the requester needs to be aware of delivery schedules to ensure that they can receive and verify the goods. However, the auditor may examine the notification process to ensure that it is secure and that there are no opportunities for fraud or errors.
C. Purchase commitments are made prior to requisitions being approved: This observation should be of concern to the IS auditor as it may indicate that the procurement process is not following the organization's policies and procedures. Requisitions are typically used to initiate the procurement process, and they are reviewed and approved before any purchase commitments are made. This control is essential to ensure that purchases are authorized, appropriate, and within budget.
D. Requisitions are being facilitated by a third-party procurement service: This observation alone may not be of concern to the IS auditor as many organizations use third-party services for procurement activities. However, the auditor may evaluate the third-party service's controls and the organization's contract with the service to ensure that the procurement process is secure, efficient, and cost-effective.
In conclusion, the observation that should be of concern to an IS auditor in the fieldwork stage of a procurement audit is option C - Purchase commitments are made prior to requisitions being approved.