RISK-BASED INTERNAL AUDIT METHODOLOGY FOR PUBLIC PROCUREMENT
DOI:
https://doi.org/10.5281/zenodo.21177851Keywords:
public procurement, internal audit, risk-based audit, audit risk, risk matrix, probability, impact, risk register, materiality, budgetary organizations.Abstract
This article develops a risk-based methodology for the internal audit of public procurement. The
author proposes a five-stage methodology based on assessing audit risk as the product of its probability (P)
and impact (I), expressed as R = P × I. The methodology also involves distributing audit objects into three risk
zones using a risk matrix, or heat map, and maintaining a risk register.
The proposed approach makes it possible to direct audit resources toward high-risk procurements, reduce
subjectivity in the selection of audit objects, and focus audit procedures on the most significant areas. The
research results contribute to improving the effectiveness of public procurement audits and ensuring their
scientifically grounded organization.
References
Committee of Sponsoring Organizations of the Treadway Commission (COSO). (2017). Enterprise Risk
Management: Integrating with Strategy and Performance. New York: COSO.
Sawyer, L. B., Dittenhofer, M. A., & Scheiner, J. H. (2012). Sawyer’s Internal Auditing (6th ed.). Altamonte
Springs, FL: The Institute of Internal Auditors.
Moeller, R. R. (2016). Brink’s Modern Internal Auditing: A Common Body of Knowledge (8th ed.).
Hoboken, NJ: John Wiley & Sons.
Kazakova, N. A. (2019). Audit: Uchebnik dlya vuzov [Audit: A University Textbook]. Moscow: Yurait.
Burtsev, V. V. (2000). Organizatsionnaya sistema gosudarstvennogo finansovogo kontrolya v Rossiyskoy
Federatsii [Organizational System of State Financial Control in the Russian Federation]. Moscow: Dashkov i K°.
Arrowsmith, S. (2014). The Law of Public and Utilities Procurement (3rd ed.). London: Sweet & Maxwell.
Thai, K. V. (Ed.). (2009). International Handbook of Public Procurement. Boca Raton, FL: CRC Press.
Open Contracting Partnership. (2024). Red Flags in Public Procurement: A Guide to Using Data to
Detect Corruption Risks. Retrieved from https://www.open-contracting.org
The Institute of Internal Auditors (IIA). (2024). Global Internal Audit Standards. Lake Mary, FL: The
Institute of Internal Auditors. Retrieved from https://www.theiia.org
International Organization of Supreme Audit Institutions (INTOSAI). (2019). ISSAI 4000: Compliance
Audit Standard. Vienna: INTOSAI. Retrieved from https://www.issai.org
International Organization of Supreme Audit Institutions (INTOSAI). (2022). GUID 5280: Guidance for
Audits of Public Procurement. Vienna: INTOSAI. Retrieved from https://www.issai.org
Downloads
Published
Issue
Section
License
Copyright (c) 2026 ECONOSCITECH INTEGRATION
This work is licensed under a Creative Commons Attribution 4.0 International License.
