The course is structured and focused on understanding how to detect and prevent unethical practices in procurement. It is aimed at internal auditing teams or anyone in a similar function.

Each module is underpinned by workshop-based, real-world case studies. The overall approach is geared towards facilitating and divulging information and skills relevant to the practical needs of the attendees, and includes the following topics:

Overview of the Purchasing Cycle
• Discuss the responsibilities of a typical corporate purchasing group and the purchasing business cycle
• Understand who is involved (internal and external)
• Identify differences in the purchasing cycle depending on the industry and company size

Purchasing Fraud Schemes
• Classifications of purchasing fraud
• Corruption
• Asset Misappropriation
• On and off-book
• Purchasing fraud schemes
• Purchasing fraud statistics and industry comparisons

Risk-based Strategy to Fight Purchasing Malpractice
• Purchasing fraud risk assessment
• Fraud opportunity reduction through purchasing process improvement
• Internal controls to reduce purchasing fraud risk
• On and off-book
• Proactive risk-based auditing to detect purchasing fraud
• Investigations of purchasing frauds identified

Internal Controls over Purchasing
• Assess the level of purchasing fraud risk at your organization, including industry and geographic considerations
• Define relevant internal control practices
(e.g. explicit policies, segregations of duties, vendor selection and independent centralized procurement group)
• Review policies, processes, and approval limits
• Exceptions to normal protocol (e.g. sole sourcing decisions and bid waivers)
• Vendor monitoring and evaluation criteria

Purchasing Fraud Detection Processes
• Risk-based purchasing fraud detection audits
• Using CAATS to detect purchasing fraud
• Tips and complaints
• Soliciting feedback from management, employees, the public and vendors (current, former and rejected)
• Vendor monitoring
• Monitoring of major contracts

Risk-based Strategy to Fight Purchasing Malpractice
• Purchasing fraud risk assessment
• Fraud opportunity reduction through purchasing process improvement
• Internal controls to reduce purchasing fraud risk
• On and off-book
• Proactive risk-based auditing to detect purchasing fraud
• Investigations of purchasing frauds identified

Detecting Particular Purchasing Fraud Schemes
• Scheme-based purchasing fraud symptoms and detection methods
• Special considerations for off-book purchasing fraud schemes
• Special considerations for contract bidding schemes

Internal Audit’s Role in Purchasing Fraud Investigations
• Purchasing fraud investigation techniques and resources
• Enterprise-wide business process