An internal control benefit of centralized purchasing in an organization includes which of the following?
A) Separation of authorization from the custody and recording function.
B) An increase in the number of vendors used.
C) Increased compensation of agents through side agreements.
D) Mathematically accurate vendor invoices.

Question

Quizplus · Accepted Answer

Centralized purchasing helps to ensure separation of authorization from the custody and recording function, which is a key internal control benefit. This helps to prevent conflicts of interest and reduces the risk of fraud or errors occurring in the purchasing process. The other options listed do not provide internal control benefits.

An Internal Control Benefit of Centralized Purchasing in an Organization