BUSINESS PM3420 The Procurement Company needs to purchase goods and services in order to function properly

Unit 10 Exercise 2: Procurement Audit ExerciseCourse Objectives and Learning OutcomesIn this assignment, you will explain Project Integration Management and Procurement Auditing.Assignment RequirementsAnalyze the following scenario:The Procurement Company needs to purchase goods and services in order to function properly.Therefore, the internal controls in place for the procurement system need to be robust.Typical Risks to a Procurement SystemListed below are common risks identified at the outset of a procurement audit:Goods ordered are not required by the organization.Goods ordered do not comply with corporate policy.Goods ordered do not provide value for money.Goods are not received by the organization.Lack of a central purchasing policy may not provide the opportunity to negotiate discountsand best prices.Common IssuesIn reality, the main risks identified above may not materialize. Detailed below are issues thatusually arise in an organization as a result of a procurement audit:New employees do not have access to purchasing procedures.No formal vetting of contractors.Lack of a coordinated approach to purchasing.Use of out-of-date or incorrect order forms.Authorization of orders by individuals who do not have the authority to do so.Use of alternative suppliers as opposed to the preferred suppliers’ catalogue.Non-compliance with Financial Regulations, for example the number of quotes obtained.Assume that you are an internal auditor. What are the recommendations you would make?Submission Requirements1-2 pages, Microsoft Word, double spaced, 12-point Times New Roman font. Cite all sources used.