AUDIT

PURCHASING

  1. Do you regularly review the quality of products purchased, their timely delivery, and the quality of other services provided by your suppliers?

  1. Do you solicit bids on purchases when you are not sure what the price ought to be?

  1. Do you have more than one source of supply for any critical item?

  1. Are most of your purchases made at the "right" price?

  1. Do you buy largely by specification, rather than by brand name or simply by accepting what the vendor offers?

  1. Do you have specific policies and procedures regarding who is authorized to purchase goods and services? receive salesman's calls? place requisitions? process records?

  1. Have you reviewed existing purchase procedures to see if they meet your needs?

  1. Does the volume of purchasing for any particular item warrant your dealing directly with its manufacturer?

Source: U.S. Small Business Administration, Management Audit for Small Service Firms, Small Business Management Series No. 38, Washington, D.C., 1979; John B. Kline, U.S. Small Business Administration, Management Audit for Small Manufacturers, Small Business Management Series No. 29, Washington, D.C., 1979, Small Business Administration, Management for Small Retailers, Small Business Management Series No. 31, Washington, D.C., 1979.

CHECKLIST EVALUATION RESOURCES AUDIT FEEDBACK HOUSE
Before You Start:
A Basic Checklist 		Business Plan
Evaluation Scale 		Small Business
and Entrepreneurship
Resources 		Small Business
Management Audit 		Feedback H o m e



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