Alberto Conti maintains quotations from vendors and Wilton Saban evaluates quotations on price (segregating record keeping from authorisation)

This situation describes a separation of duties within a procurement process. Alberto Conti is responsible for collecting or maintaining quotations from vendors, while Wilton Saban evaluates these quotations, specifically focusing on price. This segregation is a common practice in financial management and procurement as it helps to reduce the risk of fraud and errors.

The main components are:

1. Segregation of Duties: This principle is pivotal in ensuring that no single individual has control over all aspects of a financial transaction. By dividing responsibilities, it creates checks and balances within the organization.

2. Vendor Quotations: Alberto’s role involves maintaining a comprehensive record of vendor quotations, which are essential in evaluating potential suppliers and ensuring that the organization receives competitive pricing.

3. Evaluation of Quotations: Wilton’s responsibility to evaluate these quotations based strictly on price suggests that the organization prioritizes cost-effectiveness. By focusing only on price, it allows for an objective assessment of the quotations without bias.

4. Record Keeping vs. Authorization: Distinguishing between record keeping (Alberto) and authorization (Wilton) ensures that there is independence in the procurement process, which can help in compliance with internal policies and external regulations.

This collaborative approach promotes transparency, accountability, and efficiency in the procurement process.