The following set of items describes activities completed by a company in purchasing and paying for merchandise and in collecting cash for merchandise sales. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. (Choices may be used more than once.)
-Although department supervisors can request a preferred supplier or vendor, the purchasing department has the responsibility for making the final decisions on a vendor.
A)Adheres to sound internal controls
B)Violates sound internal controls
C)Neither strengthens nor violates internal control

Question

Quizplus · Accepted Answer

Having the purchasing department make the final decision on vendors helps prevent potential conflicts of interest and ensures that purchasing decisions are made based on the company's best interests, which adheres to sound internal control principles.

The Following Set of Items Describes Activities Completed by a Company