Control of procurement activities in the enterprise economic security system

Abstract

This study addresses a key aspect of protecting company's economic interests, i.e. establishing a reliable control mechanism for procurement activities. In a market environment, this issue gains particular significance, as evidenced by regularly published statistics. According to this data, wrongdoing within companies related to procurement is widespread. Typically, they are expressed as collusion between responsible employees and counterparties, resulting in the artificial inflation of contract costs and illegal pay. The consequences of such schemes include not only direct financial losses and inflated tax liabilities but also significant damage to the company's business reputation. The goal of this paper is to develop practical recommendations for building a system of internal control over procurement activities. As a result, the author substantiates a concept of phased, continuous control focused on risk assessment. Its central principle is the reallocation of resources towards auditing the most critical phases of the procurement process: determining its necessity, formulating requirements for goods or services, selecting a counterparty and analyzing the proposed price. This approach enables neutralization of potential threats in the bud and optimizes the labor costs of the internal audit function. Additionally, the study analyzes contemporary methods for enhancing the security of business processes. These include the use of electronic platforms for competitive procurement to increase transparency; implementation of information systems for supplier relationship management (SRM) and data loss prevention (DLP); and monitoring of indirect behavioral indicators among personnel.