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)safeguarding of assets and records
C)checks on recorded amounts
D)clearly defined authority and responsibility

Question

Quizplus · Accepted Answer

Clearly defined authority and responsibility refers to the allocation of tasks and decision-making power within an organization. By authorizing the purchasing department to order goods and services, management is clearly defining the responsibility for purchasing activities and providing the necessary authority to carry out those activities. This helps to ensure that purchasing decisions are made by the appropriate individuals and that the process is well-controlled.

Which Internal Control Activity Is Followed When Management Authorizes the Purchasing