Under an effective system of internal control the authorization for issuing materials is made
A) orally.
B) on a prenumbered materials requisition slip.
C) by the accounting department.
D) by anyone on the production line.

Question

Quizplus · Accepted Answer

Under an effective system of internal control, the authorization for issuing materials should be made on a prenumbered materials requisition slip to ensure proper documentation and accountability. Oral authorization is not sufficient as it lacks a written record. Authorization should also not be given by anyone on the production line without proper approval and review. The accounting department may be involved in the process, but the primary authorization should come from the department or individual requesting the materials.

Under an Effective System of Internal Control the Authorization for Issuing