For effective internal control purposes, the vouchers payable department generally should:
A)approve the purchase order.
B)have the authority to sign the checks.
C)establish the agreement of the vendor's invoice with the receiving report and purchase order.
D)supervise the preparation of the receiving report.

Question

Quizplus · Accepted Answer

The vouchers payable department should establish the agreement of the vendor's invoice with the receiving report and purchase order to ensure that payments are accurate and valid. Approving the purchase orders and supervising the preparation of the receiving report are responsibilities of other departments. Having the authority to sign checks can create a conflict of interest and is not recommended for effective internal control.

For Effective Internal Control Purposes, the Vouchers Payable Department Generally