Mini Review - Journal of Finance and Marketing (2021) Volume 5, Issue 5
Mini Review on vendor audit.
Audit is a systematic examination and evaluation of an organization for obtaining evidence and evaluating it to determine the extent to which requirements criteria re fulfilled. There is a proper process of audit which includes preliminary planning, presurvey, survey, data collection and analysis and report of the audit. The audit is of three types- Internal audit, External audit, Third party audit. External audit is a non-regulatory audit in which company are carry out the audits on its vendors to check out the compliance of the vendors towards the regulatory bodies. It ensures that vendor show compliance towards the standards. Vendors are the sellers of raw materials to the finished product manufacturing company. Vendor audit, rating, selection, evaluation, qualification is important to finalize the vendor from which the raw material will be purchased. It gives about the knowledge that which vendor is suitable for the purchasing of material. This review article focuses on the procedure for vendor selection, evaluation, and auditing process. Vendor audit is questionnaire based which includes the points which will be checked during the audit. The final report of vendor audit have all the data and form the basis of vendor certification and decertification.Author(s): Kiran Singh*, Archana Gahtori