In the following situation,which internal control procedure needs strengthening?
- At Hofstra Services,the accounting clerk fills out unnumbered purchase order forms for purchases of supplies.An operations engineer completes the form with a detailed description of the supplies being ordered,and the operations manager approves the purchase and passes the purchase order back to the accountant for processing.
A) Assignment of responsibilities
B) Competent, reliable, and ethical personnel
C) Separation of duties
D) Documents

Question

Quizplus · Accepted Answer

The internal control procedure that needs strengthening is the use of documents. The purchase order forms are unnumbered, which means there is no way to track them or ensure that all purchases are authorized and recorded. The use of numbered purchase order forms would help to ensure that all purchases are authorized, recorded, and tracked.

In the Following Situation,which Internal Control Procedure Needs Strengthening