For good internal control:
A)the purchasing agent should also receive the goods.
B)the purchasing agent should also approve the invoice for payment.
C)the purchasing agent should not receive the goods or approve the invoice for payment.
D)the purchasing agent should prepare an EFT for payment.

Question

Quizplus · Accepted Answer

Good internal control segregates duties and responsibilities to minimize the risk of errors, fraud, or misuse of assets. Therefore, the purchasing agent should not have control over both the receipt of goods and the approval of invoices for payment. These duties should be assigned to different individuals or departments to ensure checks and balances in the process. However, the purchasing agent may initiate the purchase request and negotiate the terms and conditions of the purchase agreement. The preparation of the EFT for payment may be performed by the accounting or treasury department.

For Good Internal Control