The first report gives the auditor an overall perspective for the nature of the purchasing
process. Notice that 91 percent of the total number of disbursement vouchers
constitutes only 15 percent of the business volume for the period. The second report
shows the business activity associated with individual vendors. Over 40 percent of the
organization’s purchases are from a single vendor, while most of the other vendors receive
only a small percentage of the total business. These findings may reflect a natural
business phenomenon, or they may signify potential risks.