Audit Program

2442 Words May 24th, 2013 10 Pages
ABCD 1234 AND COMPANY WLL Corporate Office | To: Head – Procurement & StoresCC: | From : Head – Internal Audit | Report No | Date : |

* Subject: Audit Report on Operations of ABCD 1234 AND COMPANY WLL.
We have done general operations audit of ABCD 1234 AND company WLL from 1.11.2012 to 20.11.2012 and submitting the draft audit report below..

Executive Summary: * There is no ABC analysis of the suppliers have been done by the company ( Refer finding # 1).
The Purchasing Department has not carried out an ABC analysis for suppliers and articles. As a result purchasing activities are not focusing its activities on the right suppliers and articles. Local purchases are done with only one supplier and overseas purchases are
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This usually translates for the volume into: A-suppliers = 10% of purchasing volume; B-suppliers = 15% of purchasing volume and C-suppliers = 75% of purchasing volume.

ABC Analysis for ABCD 1234 and company WLL
The following table shows the segregation of suppliers in ABC categories as defined above:

Table 6: ABC analysis per supplier (2010-11) (RO ‘000s) | A-suppliers | B-suppliers | C-suppliers | Total | InternalSuppliers | Number of suppliers | Total | | | | | | | In % | | | | | | Purchasing value | Total | | | | | | | In % | | | | | ExternalSuppliers | Number of suppliers | Total | | | | | | | In % | | | | | | Purchasing value | Total | | | | | | | In % | | | | | Total | Number of suppliers | Total | | | | | | | In % | | | | | | Purchasing value | Total | | | | | | | In % | | | | |

Finding – There is no ABC analysis of the suppliers have been done by the company.
The Purchasing Department has not carried out an ABC analysis for suppliers and articles. As a result
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