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 ...
