The main audit objective is to ensure that the procurement of goods and services including public works achieves its goals and is in compliance with relevant law and regulations. In addition, it needs to be transparent, freely competitive and worthwhile.
The auditing public procurement (purchase, hire, rent, etc.) consists of three main phases as following:
In the first phase (Procurement Plan), the auditor will review procurement plan which auditees have to make up under the Notification of State Audit Commission about preparation of the procurement plan of audited entities. The objective of this notification is to enhance the good governance in the procurement system of audited entities. The notification determines that all audited entities have to prepare the procurement plan and submit to SAI. The main content of the procurement plan consist of procuring items, value of good & services and public works (more than 100,000 Bath for goods & services and 2 million Bath for land purchasing & public works), selecting procurement method, expected month of bidding announcement, expected month of signing contract, and expected payment plan.
Under this notification, the auditor will receive the procurement plan during the first month of fiscal year which in Thailand commenced on October. Therefore, the auditor can review the procurement needs from procurement plan of audited entities. In particular, the important projects like Mega Project must be appeared in the procurement plan. With this information, the auditor can prepare the audit plan for the next phase.
In the second phase (Tendering and Awarding Processes), SAI will examine the accuracy of the tendering and awarding processes. In this phase, SAI plays the key role obviously especially enhancing transparency and accountability. According to Government Procurement and Supplies Management Act B.E. 2560 and related regulations, it determines that procuring agency has to advertise its procurement in the website: www.gprocurement.go.th, and notify to SAI. Additionally, it stated that all government agencies have to submit copy of contract which valued more than 1 million Baht to SAI within 30 days after signed contract. Therefore, the audit mandate of SAI is existed in the public procurement regulation which allows SAI to carry out a procurement audit under transparency and accountability of tendering and awarding processes.
Generally, the auditor will examine all documents in procurement procedures. Initially, the auditor will check main processes as followings:
For the third phase (contract management), it is the audit of contract management which the main objective is to examine the execution of public procurement contract. Further, the auditor could review the delivery time of supply of goods, equipment, and public works construction which should be completed within the time of contract and also the extension of contract period. Likewise, in case of price adjustment contract the auditor should also review the audit of the payment of the escalation sum.
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