Approvals
Within limits, by the right people.
All internal audit & controls services
Internal Audit & Controls
Vendor and Procurement Audit
FinAura audits how your company buys: purchase approvals and limits, rates against contracts and the market, duplicate and split invoices, the vendor master for dormant, duplicate or related vendors, and payments without matching receipts. Findings come with evidence and the amount involved, and the process is tightened so they do not recur.
- Chartered Accountant-led
- Bangalore and across India
- Reply within one business day
What is covered
What Vendor and Procurement Audit Covers
Where purchase money goes, and whether it should.
Rates
Against contracts and quotes.
Duplicates and splits
Same bill twice, orders split.
Vendor master
Duplicates, dormant, related.
Receipts
Paid for what was received.
Evidence
Amounts and documents.
How the month runs
How It Works
Extract, analyse, test, report.
Step 1
Extract
- Purchases
- Payments
- Vendor master
Step 2
Analyse
- Duplicates
- Splits
- Rate trends
Step 3
Test
- Samples
- Documents
- Related parties
Step 4
Report
- Findings
- Amounts
- Fixes
Your part
What We Need From You
- 01Purchase and payment data
- 02Vendor master
- 03Contracts and approval limits
- 04Purchase team's time
Our part
What You Get
- Leakages quantified with evidence
- A cleaner vendor master
- Tighter approvals
- Recoveries where possible
A common question
What does a procurement audit usually find?
Duplicate payments, orders split to stay under approval limits, rates above contract, vendors who are related to employees, and goods paid for but never fully received.
Data analysis over the whole year finds the patterns; testing samples confirms them with documents.
See accounts payableFindingsWith amounts
TestsSamples with documents
DataA full year of purchases
Who it is for
Who It Is For
Companies with large purchase spend
Manufacturing, construction, retail.
Owners suspicious of costs
Rising without reason.
Companies with decentralised buying
Many buyers.
Boards wanting assurance
Independent review.
The rules, in plain English
What the Law Says
Companies Act, 2013
Section 138
Classes of companies set out in the rules appoint an internal auditor, who may be a chartered accountant or another professional the board decides, to conduct an internal audit of the company's functions and activities.
Official source: mca.gov.inCompanies Act, 2013
Sections 134(5) and 143(3)
Directors report on internal financial controls, and the statutory auditor reports on whether the company has adequate controls that operate effectively, with exemptions for some smaller companies.
Official source: mca.gov.inCompanies (Auditor's Report) Order, 2020
Inventory and fixed assets
The statutory auditor reports whether physical verification of inventory and property, plant and equipment was done at reasonable intervals and whether discrepancies were dealt with.
Official source: mca.gov.inThis is general information, not advice for your situation; we confirm what applies to you before any work starts.
Questions we get asked
Vendor and Procurement Audit: Questions, Answered
What is a procurement audit?
A review of the purchasing process and transactions to check approvals, prices, vendors and payments, and to find leakage.
How do you find duplicate payments?
By analysing the full year's payments for the same vendor, amount, invoice number or date patterns, then confirming with documents.
Do you check vendors related to employees?
Yes, by comparing vendor details such as addresses, bank accounts and contacts with employee records, within privacy limits.
Can duplicate payments be recovered?
Usually, by adjusting against future bills or asking the vendor for a refund.
Often Taken Together
All 12 Internal Audit & Controls services01Internal Audit & ControlsInternal AuditRisk-based reviews of purchasing, sales, inventory, payroll, cash and compliance, with findings ranked by what matters and a plan to fix them.02Internal Audit & ControlsForensic Review and Fraud Investigation SupportA structured review when something looks wrong: tracing transactions, preserving evidence and reporting findings.03Accounting & FinanceFinance OperationsReconciliations, payables, receivables and a predictable month-end close.04Systems & ControlsPolicies & DocumentationFinance and HR policies, employee handbooks, SOPs and business documentation.