Purchase Order Verification Procedure

Step Procedure Responsible Time

Start
1 Secure Materials Requisition Slip (MRS) Requestor /
Purchaser
2 Creation of Purchase Order Form Purchasing
3 Forward to Internal Audit for verification Purchasing
4 Verifying the contents of Purchase Order in particular of: Internal Audit 30 minutes
 Price / Cost of the Unit per Purchase
 Quantity to be purchased Order Form
 Product Certification, if any (BRC, Halal, etc.)
 Terms of Payment

Also, to conduct other details like whom to contact in

case data is unavailable.
5 Approval of Purchase Order Form Internal Audit 5 minutes per
P.O.
6 Forwarding of Approved Purchase Orders Internal Audit
End

Conditions of Purchase Orders for Audit Verification

No. Factors Procedure
1 New Suppliers To verify authenticity if
conflicts of interests may or
could arise
2 Price Changes of more than 20% from the recent P.O. To consider the impact of price
increase in our operations
3 Large Purchase To establish controls in
preparation of large amount
Large Purchase: disbursements.
 Purchased amount of at least Five Hundred
Thousand Pesos (P 500,000.00) per Purchase Order
Form
 Purchase of Farm and Production Plant Machineries
and Equipment (Property, Plant and Equipment),
with an amount at least of P 20,000.00.
 Involves Importation
 To be used in Office and Operations
 Car Plan Vehicle
4 Please add