Audit Plan

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1. Audit Overview

• Audit Title: Operational Efficiency and Compliance Audit

• Department/Process Audited: Procurement Department – Global Supply Chain Division

• Auditor(s): Jane Smith (Lead Auditor), Michael Brown (Senior Auditor), Laura Johnson (Auditor)

• Audit Date(s): Fieldwork: March 1 – March 10, 2060
  Report Submission: March 20, 2060

• Location: Headquarters – Orion Global Logistics, New York, NY

• Audit Type: Internal Operational & Compliance Audit (Annual)

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2. Audit Objectives

• Purpose of Audit:
  The primary objective of this audit is to evaluate the efficiency and compliance of the procurement process within the Global Supply Chain Division. Specifically, we aim to:

  • Assess adherence to internal procurement policies and regulatory requirements (ISO 9001 and relevant federal procurement laws).

  • Identify potential risks related to vendor selection and contract management.

  • Evaluate the effectiveness of cost-saving measures implemented in the last fiscal year.

• Scope of Audit:
  The audit will focus on all procurement activities between January 2059 and December 2059, including vendor evaluations, contract renewals, and purchase orders exceeding $500,000. It will also cover key performance indicators related to cost savings and compliance.

• Key Risks/Issues to Address:

  • Non-compliance with procurement regulations and internal policies.

  • Inadequate vendor performance tracking or risk management.

  • Over-budget or inefficient procurement cycles.

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3. Audit Criteria

1. Standards/Regulations:
   The audit will assess compliance based on the following:

   • ISO 9001:2059 – Quality Management Systems Standard.

   • U.S. Federal Acquisition Regulations (FAR), particularly for contracts exceeding $1M.

   • Internal Procurement Policy Manual – Version updated January 2060.

2. Policies and Procedures:
   The audit will evaluate the procurement procedures outlined in the company's Global Procurement Procedures Guide, specifically focusing on vendor management, procurement authority limits, and risk management protocols.

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4. Audit Approach/Methodology

• Audit Type and Frequency:
  This annual internal audit of procurement processes focuses on operational efficiency and compliance with standards.

• Data Collection Methods:
  Data will be gathered through:

  • Document Review: Contracts, purchase orders, vendor assessments, and internal reports.

  • Interviews: Procurement managers, finance officers, and key vendor liaisons.

  • Data Analysis: Review procurement trends, cost savings, and vendor performance metrics.

  • Site Visits: Visits to key vendor sites for on-the-ground assessment of compliance.

• Sampling Strategy:
  A risk-based selection will be employed, with a focus on high-value contracts exceeding $500,000, critical suppliers, and any outliers in procurement timelines.

• Tools and Techniques:
  ProcureTrack 2060 – the company’s procurement management software – will be used for data extraction and analysis. Advanced data analytics and visualization tools such as PowerBI 10.0 will help identify patterns and discrepancies in procurement cycles.

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5. Audit Schedule

• Pre-Audit Planning Date: February 20, 2060

• Fieldwork Start Date: March 1, 2060

• Fieldwork End Date: March 10, 2060

• Draft Report Submission: March 15, 2060

• Final Report Submission: March 20, 2060

• Audit Follow-up: April 10, 2060 – Follow-up with the procurement team on implementation of corrective actions, if any.

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6. Audit Team Responsibilities

1. Lead Auditor:
   Jane Smith

   • Responsible for overseeing the entire audit process, including planning, fieldwork coordination, and final report delivery.

2. Senior Auditor:
   Michael Brown

   • Assists with fieldwork, conducts interviews, and reviews vendor contracts. Specializes in compliance with ISO standards.

3. Auditor:
   Laura Johnson

   • Focuses on data analysis, vendor performance metrics, and documenting audit findings.

4. External Auditors/Consultants:
   PricewaterhouseCoopers – Engaged to provide external validation for high-risk contracts and provide additional expertise on federal procurement law compliance.

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7. Audit Checklist

The audit will cover the following key items:

• Vendor Contracts – Review 15 high-value contracts (> $500,000) to check for compliance with company standards and federal laws.

• Purchase Orders – Ensure all POs over $250,000 have been authorized and processed in line with the internal procurement policy.

• Vendor Risk Assessments – Verify whether regular vendor risk assessments were conducted and if any action was taken for high-risk vendors.

• Cost-Saving Initiatives – Review and validate the reported $2 million in cost savings achieved in FY 2059 through procurement strategies.

• Procurement Cycle Times – Assess the time taken from requisition to final procurement and identify areas for improvement if cycle times exceed 30 days.

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8. Deliverables

• Audit Report:
  The final report will provide a comprehensive overview of the audit findings, categorized by compliance and operational efficiency. The report will include:

  • Executive Summary

  • Detailed Audit Findings with supporting documentation

  • Recommendations for improvement

  • Compliance Score (from ISO standards perspective)

• Recommendations:
  Based on the findings, we will provide specific, actionable recommendations, such as enhancing vendor management processes, revising contract terms, or implementing stricter cost-control mechanisms.

• Management Response:
  The procurement team will be required to provide a written response within 10 business days of receiving the final report. This response will outline corrective actions taken and target dates for implementation.

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9. Key Stakeholders

1. Auditee(s):
   John Doe – Procurement Manager, Global Supply Chain Division
   Emily Wilson – Senior Contracts Manager, Procurement Department
   David Lee – CFO, Finance Department

2. Senior Management:
   Sophia Martinez – COO, Orion Global Logistics
   Ethan Carter – Director of Supply Chain Operations

3. Board of Directors (if applicable):
   Audit Committee, Board of Directors

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