Which of the following controls would best mitigate the risk of fraud in the bidding process?

Which of the following controls would best mitigate the risk of fraud in the bidding process?
A . Have a bidding committee open the tender bids.
B . Restrict the time to submit tender bids.
C . Keep minutes of pre-bid meetings.
D . Allow the higher tenders to rebid.

View Answer

Answer: A

Explanation:

Having a bidding committee open the tender bids is the best control to mitigate the risk of fraud in the bidding process. This approach ensures transparency and reduces the risk of manipulative practices by involving multiple stakeholders in the bid opening, thereby preventing any single individual from influencing the outcome unduly.

Reference: Best practices in procurement and internal controls related to tender processes.