For effective internal control purposes, the accounts payable department generally should
A) approve the purchase order.
B) have the authority to sign the checks.
C) establish the agreement of the vendor's invoice with the receiving report and purchase order.
D) supervise the preparation of the receiving report.

Question

Quizplus · Accepted Answer

The accounts payable department should establish the agreement of the vendor's invoice with the receiving report and purchase order in order to ensure that payments are made for valid and authorized purchases. Approving the purchase order and supervising the preparation of the receiving report are roles that should be performed by other departments to maintain segregation of duties. Having the authority to sign checks should be limited to authorized personnel who are not involved in the accounts payable process to prevent conflicts of interest.

For Effective Internal Control Purposes, the Accounts Payable Department Generally