Module 10: Compliance and Auditing in P2P

What is the primary purpose of compliance standards in procurement?

• To increase supplier profits

• To ensure purchasing activities follow legal, ethical, and organisational policies

• To speed up procurement without checks

• To minimise supplier competition

Which of the following is an example of regulatory adherence in procurement?

• Creating supplier loyalty programs

• Aligning with GDPR, FCPA, and UK Bribery Act requirements

• Offering discounts for urgent purchases

• Negotiating better payment terms

What is the main focus of ethical sourcing?

• Reducing supplier costs

• Meeting only delivery deadlines

• Enforcing supplier codes of conduct and ESG standards

• Speeding up procurement cycles

What is the key purpose of an internal audit in the P2P process?

• To provide external assurance to investors

• To assess internal controls and improve efficiency

• To replace procurement policies

• To certify suppliers for international trade

External audits in P2P are typically conducted to:

• Improve staff efficiency

• Verify compliance with financial and regulatory requirements

• Ensure staff promotions

• Review procurement marketing strategies

Which of the following is an example of a best practice in auditing?

• Ignoring low-value transactions

• Allowing one person to handle requisition, approval, and payment

• Maintaining a full audit trail for every PO and payment

• Reducing documentation for faster payments

Why is data protection critical in procurement systems?

• To increase supplier competition

• To comply with GDPR and prevent data breaches

• To reduce invoice processing time

• To simplify contract negotiations

What is the purpose of financial reporting compliance in P2P?

• To ensure supplier satisfaction

• To align POs, invoices, and payments with accounting standards

• To eliminate audit requirements

• To speed up purchase order approvals

Which of the following best describes supplier screening?

• Reviewing suppliers’ marketing strategies

• Vetting suppliers for sanctions, trade compliance, and ethical sourcing

• Ensuring suppliers offer discounts

• Checking if suppliers use digital invoicing systems

How does ESG compliance contribute to procurement?

• It reduces the number of suppliers

• It ensures sustainable, ethical, and responsible sourcing

• It eliminates the need for audits

• It guarantees the lowest procurement cost