The internal control activities within the purchasing process, related to authorization of transactions, would include which of the following?
A)The accounting duties related to requisitioning, ordering, and receiving goods should be performed by different individuals.
B)The custody of inventory and the recording of inventory transactions are required to be maintained.
C)Specific individuals should be given authoritative responsibility for preparing purchase requisitions and purchase orders which would include which items to purchase, how many items, and which vendor.
D)Periodic physical inventory counts are to be reconciled with the inventory ledger and general ledger.

Question

Quizplus · Accepted Answer

Specific individuals should be given authoritative responsibility for preparing purchase requisitions and purchase orders which would include which items to purchase, how many items, and which vendor. This ensures that the transactions are properly authorized and documented. A, B, and D are also important internal control activities within the purchasing process, but they relate to other aspects such as segregation of duties, custody of assets, and inventory accuracy.

The Internal Control Activities Within the Purchasing Process, Related to Authorization