Title: Auditability in public procurement: an analysis of internal controls and fraud vulnerability

Authors: Rene G. Rendon; Juanita M. Rendon

Addresses: Graduate School of Business and Public Policy, Naval Postgraduate School, 555 Dyer Road, Monterey, California, 93943, USA ' Graduate School of Business and Public Policy, Naval Postgraduate School, 555 Dyer Road, Monterey, California, 93943, USA

Abstract: The purpose of our research was to assess how knowledgeable US Department of Defense (DoD) contracting officers are regarding procurement internal controls and what perceptions they have concerning their organisations' susceptibility to procurement fraud. In this empirical study, we developed a web-based survey designed to assess the DoD procurement workforce's knowledge of procurement internal controls as well as their perceptions of organisational internal controls. Based on our findings, we concluded that agencies may be lacking auditability in their organisations, and we provided recommendations to DoD on improving procurement internal controls to help reduce its vulnerability to procurement fraud as well as ensure auditability in their organisations. As defence organisations, as well as international public procurement agencies, continue to strive for accountability, integrity, and transparency in their procurement operations, auditability will continue to increase in importance.

Keywords: public procurement; auditability; internal controls; competence; procurement processes; fraud vulnerability; US Department of Defense; US DoD contracting officers; USA; United States; defence organisations; accountability; integrity; transparency; auditing.

DOI: 10.1504/IJPM.2015.072388

International Journal of Procurement Management, 2015 Vol.8 No.6, pp.710 - 730

Received: 22 Jul 2014
Accepted: 20 Aug 2014
Published online: 12 Oct 2015 *

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