Which internal control activity is followed when management authorizes the purchasing department to order goods and services for the company?
A) Segregation of duties
B) Physical security
C) Independent verification
D) Establishing responsibility

Question

Quizplus · Accepted Answer

The internal control activity that is being followed in this scenario is establishing responsibility, which is the assignment of responsibility to a specific employee or department for a task or function. By authorizing the purchasing department to order goods and services, management is establishing responsibility for that function, which helps ensure that employees are aware of their roles and responsibilities, and that there is accountability for the execution of those responsibilities.

Which Internal Control Activity Is Followed When Management Authorizes the Purchasing