Course Information

This course provides government audit professionals with a comprehensive, risk-based approach to auditing procurement and contract management functions in public sector environments. The course is aligned with Government Auditing Standards (Yellow Book), IIA Standards, and COSO Internal Control Framework.

Participants will evaluate internal controls across the procurement lifecycle, assess compliance with applicable regulations, identify fraud risks, and analyze operational efficiency. Through structured audit methodologies, case studies, and practical exercises, participants will develop the skills required to design and execute procurement audits that strengthen accountability, transparency, and value for money in government operations.

Objectives

Upon completion of this course, participants will be able to:

• Apply risk-based auditing principles to procurement and contract management.

• Evaluate internal controls using COSO and government audit frameworks.

• Design audit procedures aligned with Government Auditing Standards (Yellow Book)

• Identify fraud indicators including bid rigging, vendor collusion, and conflicts of interest.

• Assess efficiency, effectiveness, and value-for-money in procurement operations.

• Develop clear, defensible audit documentation and findings.

Outline

1. Government Procurement and Audit Foundations

• Overview of public sector procurement lifecycle

• Regulatory and compliance considerations

• Alignment with Yellow Book and IIA Standards

• Internal control structures (COSO framework)

2. Risk Assessment in Procurement

• Identifying procurement risks

• Fraud risk indicators and red flags

• Conflict of interest and vendor collusion risks

• Risk prioritization and audit scoping

3. Designing Procurement Audit Programs

• Defining audit objectives and scope

• Control identification and evaluation

• Sampling methodologies and testing approaches

• Risk-based audit planning

4. Contract Management Controls

• Contract monitoring and performance tracking

• Change order and amendment controls

• Payment authorization and verification processes

• Vendor performance evaluation

5. Audit Execution and Testing

• Walkthroughs and control testing

• Substantive testing procedures

• Use of data analytics in procurement auditing

• Identifying control deficiencies

6. Efficiency and Effectiveness Auditing

• Value-for-money analysis

• Cost containment and spend visibility

• Benchmarking procurement performance

• Identifying operational improvement opportunities

7. Audit Documentation and Reporting

• Developing clear audit findings

• Linking evidence to conclusions

• Common documentation deficiencies

• Communicating findings to stakeholders

8. Case Study and Practical Application

• Real-world procurement audit scenario

• Risk identification and control evaluation

• Developing audit findings and recommendations

Participants should have a foundational understanding of auditing principles and internal control concepts. Prior experience in government or internal auditing is recommended but not required.