The advisability of conducting second party audits within state procurement

Openness, transparency and non-restricting competition within state procurement leads to failure of contracts’ terms execution and have a negative impact on the level of product quality that quite often leads to additional costs for the correction of nonconformity and negates all obtained economic effect of competitive procedures. An effective tool to reduce dependence on uncontrolled risks associated with suppliers is conducting second party audits, which contributes to the formation of a fairly objective view of participants of procurement procedures and their ability to fulfill a contract. This article analyzes a number of problematic issues related to state procurement, and figures out the advisability of conducting second party audits within state procurement.