The use of analytical procedures in audit of procurement of goods, works, and services

Abstract

Subject. The more intensive use of the Unified Information System in Procurement data helps evaluate the reliability of statistical reports in procurement of goods, works, and services and ensures the efficiency of the procurement process. Used for auditing, analytical procedures allow to analyze the feasibility of procurement, make some quantification, and apply informal methods by identifying the specifics of basic provisions of statistical reports. Objectives. We investigate the use of analytical procedures in procurement audit so as to evaluate the existing procurement situation of a business entity, possible solutions and development paths, and determine the corruption risk indicators in procurement. Methods. The study relies upon methods of trend, structural and coefficient analysis, comparison, grouping, methods for systematization, analytical processing of economic data and presentation of findings. Results. We justify the use of analytical procedures in audit as they are supposed to provide users of statistical reports with relevant information to explain their administrative decisions on procurement management. The verification of statistical reporting data can be hampered with, for example, the coefficient method, since it focuses on the correlation of the expected bona fide competition level, which has been attained, and the effective standards in regulatory documents on the contractual system. Conclusions and Relevance. As part of procurement audit, analytical procedures may apply to the deviation from target and previous indicators. Scrutinizing causes of such deviation, it is possible to evaluate the dynamics of procurement in the long time horizon and the reliability of statistical reporting.