Choose from the list below the best control activity to prevent purchases from unapproved vendors which are conflicts of interest or unauthorized related-party transactions that may result in regulatory or reputational damage.
A) Regularly review approved vendors and their performance. Update the database to remove inactive vendors and those who do not meet performance standards.
B) All purchases routed through the purchasing department
C) Segregation of duties
D) Implement training for employees who communicate with vendors for purchasing.

Question

Quizplus · Accepted Answer

Routing all purchases through the purchasing department ensures that purchases are made from approved vendors only, preventing unauthorized transactions and mitigating risks associated with conflicts of interest or regulatory and reputational damage.

Choose from the List Below the Best Control Activity to Prevent