The following is a list of major findings in the executive summary report for an audit of the contract management process
- Noncompliance with contract provisions requiring vendors to obtain insurance policies with indemnity value of not less than $1 million
- Compliance with contract obligations and deliverables is not monitored
- No contract agreement with five vendors providing core services
Which of the following is an appropriate conclusion that can be drawn from these findings?

Question

The following is a list of major findings in the executive summary report for an audit of the contract management process

- Noncompliance with contract provisions requiring vendors to obtain insurance policies with indemnity value of not less than $1 million

- Compliance with contract obligations and deliverables is not monitored

- No contract agreement with five vendors providing core services

Which of the following is an appropriate conclusion that can be drawn from these findings?

Sukhpal Singh · Accepted Answer

The internal controls guiding contract management are not operating effectively

Sukhpal Singh · Answer

These are weaknesses resulting from a lack of a documented contracting policy

Sukhpal Singh · Answer

Substandard service delivery by vendors may not be detected

Sukhpal Singh · Answer

Management should expedite actions to rectify the observations identified

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