Which information should an auditor review first to evaluate procurement operations?

In evaluating procurement operations, understanding the goals of the function and the plans in place to achieve them is crucial. This information provides a framework for how the procurement department aligns its activities with the overall objectives of the organization. By reviewing the goals and corresponding plans, an auditor can assess whether procurement activities are strategically focused and if resources are being allocated effectively to meet desired outcomes.

This approach allows for a more holistic review of operations since it connects procurement practices to overarching business objectives. It establishes a baseline against which the effectiveness of the purchasing policies and procedures can be measured, ensuring that the auditor can evaluate both compliance with those policies and the impact of procurement activities on the organization’s success.

The other options, while relevant, do not provide the same level of contextual understanding. Reviewing purchasing policies and procedures may be important, but it comes after understanding the goals they are meant to support. Job descriptions give clarity on responsibilities, which is helpful but does not address the strategic objectives of procurement. Data mining is a technical approach that could yield insights, but without first understanding the goals and plans, it cannot be effectively interpreted in terms of procurement performance.