Auditing Vendor Information To Ensure Accuracy And Legitimacy

In business section , a vendor is a person  who has been  given the  responsibility of supplying  goods and services to theorganization, in  normal circumstances, before any supply of the  commodity  is made, the organization  gives a purchase  order of the  required  commodities. The vendor information contains some formssections that outlines the details of the vendor or any other person whowould wish to do business.

Read also Contract Formation and Working with Vendors to Ensure Successful Completion of Business Projects

For the past years, mostcompanies are exploring various techniques to understand the assurance of the commodities needed to be supplied, the officer in charge before any vendor is given an opportunity he is subject to fill the design form including the price and the range quantity to be supplied. (Choi  & Hartley 1996).  For instance, the audit gives an internal control to reduce the risks associated with organization running out of stock. The relation between the cost and the actual implementation is analyzed to ensure that profits are utilized, itslegitimacy and supervisoryagreement s is bonded by the laws of the state concerned in the contract agreements. They are ways of regulating the contact betweenthe the two parties an agreement on terms and conditions of service delivery.

According to Chen &Paulraj (2004),the establishedprocedures  of supply ensures that  controls  are regularly documented  and  filed to confirm that he controls are  effectively monitored,  the management  therefore should ensure that relationship betweenthe purchase department and the administration is cohesive so as to fastenthe  implementation of the ordering process, lack of proper coordination results to unforeseen inefficiencies leading to improper functioning of organization because of lack of resources to  run its activities,

Therefore, to ensure the accuracy of audit of the vendor records are well managed, the organization should emphasize the issuance of receipts or having a cash collection to be a centralized. Here  the reduction of the collection locations  reduces theft hence provides an opportunity of transparency and  accountability. (Gerlach ,1992),the  consistency  information in vendor records  thus makes the treasure officer have equality  in service delivery  in ensuring satisfaction to the vendors.

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