During an internal audit of a university's procurement process, it is discovered that there is no formal procedure for vendor selection, leading to inconsistent and potentially biased decisions. What should be the auditor's recommendation? ○ A. To select vendors based solely on the lowest bid to ensure cost-effectiveness. OB. To delegate vendor selection to an external agency. ○ C. To establish a formal, transparent, and criteria-based vendor selection process. OD. To continue with the current process as it allows flexibility.

During an internal audit of a university's procurement process, it is discovered that there is no formal procedure for vendor selection, leading to inconsistent and potentially biased decisions. What should be the auditor's recommendation? ○ A. To select vendors based solely on the lowest bid to ensure cost-effectiveness. OB. To delegate vendor selection to an external agency. ○ C. To establish a formal, transparent, and criteria-based vendor selection process. OD. To continue with the current process as it allows flexibility.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

Section: Chapter Questions

Problem 31RQSC

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