Question

Which of the following is not an internal audit objective designed to add value to a purchasing department?

A. The director of purchasing is new to the organization and has made several decisions regarding vendor approvals with which the auditor does not agree.
B. The purchasing process is causing unnecessary delays in ordering product.
C. The purchasing department is not following a new human resource policy requiring a six-month performance review for new employees.
D. A review of the bidding process indicates that a vendor company may be operating under two different names and therefore purchasing is not getting the three independent bids required by policy.
C. The purchasing department is not following a new human resource policy requiring a six-month performance review for new employees.

Answer 1

Option A is not an internal audit objective designed to add value to a purchasing department, as it reflects personal disagreement rather than an objective audit finding. Options B, C, and D address efficiency, compliance, and policy adherence which are typical audit focal points.

Step-by-step explanation:

The question posed pertains to the objectives of internal audit within a purchasing department and which option does not align with the typical goals of adding value through an audit.

Option A suggests disagreement with the decisions of a new purchasing director, which is more about personal judgment rather than an audit objective geared toward adding value. The purpose of an internal audit is to objectively evaluate processes, controls, and policies, not to agree or disagree with management decisions on subjective grounds unless those decisions breach company policies or regulations.

Option B and Option D are valid concerns for internal audit as they directly relate to efficiency and compliance issues in the purchasing process that can impact the organization's bottom line. These would be typical areas where internal audit would seek to add value.

Option C relates to an HR policy and not directly to the purchasing process. While internal audits might include a review of HR policies to the extent that they impact financial controls and risk management, this particular policy about performance reviews does not connect to the purchasing department's core functions or value addition from an audit perspective. However, it could be relevant if the audit scope specifically includes compliance with HR policies.

Therefore, based on the options presented, Option A is the one that does not represent an objective internal audit designed to add value to a purchasing department. It reflects a subjective disagreement rather than an objective audit finding. Mentioning the correct option in the final answer, the option to choose is Option A.