Scenario a
The auditor should not be concerned about the bidding process in this case. The fact that Wright had won 12 of the 21 bids does not imply that the controls on the bidding processes are not effective. Provided the 12 contracts were awarded competitively and that due process was followed, it should not concern the auditor.
Scenario b
This situation should concern the auditor about the company’s controls for the bidding process. Wright won 12 of the 21 bids and in each case, Wright was the last to submit its bid. It raises questions about possible canvassing between the procurement officials as well the procedures for opening bids. The officials must have shared the details of the other bids to Wright.
Recommended Controls
All procurement officers involved in the process must declare their interests. An officer with a conflict of interest must declare so and should be excluded from the process.
The duties must be segregated such that receiving the bids, opening the bids and evaluation of the bids are not done by one person or one group.
All bids must be opened on the same day and in the presence of the representatives of all the bidders.
Canvassing or communication between the committee officials and the bidders should be prohibited.
Scenario c
Each vendor winning seven bids should concern the auditor about the controls for evaluation. The award should be competitive and equitable. It does not mean awarding the contracts equally among the three bidders.
Recommended controls
The evaluation criteria should be defined and must be followed to the latter. It should be clearly set in the tender documents.
Every process should be documented.
At least three people should conduct evaluation
Scenario d
This situation should be a concern to the auditor since the process should help the company minimise costs without compromising quality.
Recommended controls
All procurement officers involved in the process must declare their interests. Officers with conflict of interest should be excluded from the process.
The lowest qualified bidder should win the bid. In case the contract is awarded to any bidder other than the lowest bidder, the committee should justify their decision.
The evaluation must be done by at least three members of the committee.
The evaluation criteria should be predetermined and clearly defined.
Works cited
Pitt, Sally-Anne. Internal Audit Quality: Developing A Quality Assurance And Improvement
Program. New York: John Wiley & Sons, 2014. Print.
