Which of the following controls can be applied to minimise the risk of under or over estimating revenue and expenditure amounts?
A)Independent approval of budget estimates
B)Ask operational managers to prepare budget estimates
C)Link budget values to performance monitoring
D)All of the options are correct.

Question

Quizplus · Accepted Answer

All of the options mentioned can help in minimizing the risk of under or over estimating revenue and expenditure amounts. Independent approval of budget estimates ensures that the estimates are scrutinized by someone other than the preparer. Asking operational managers to prepare budget estimates can provide a better understanding of the costs involved in running the business. Linking budget values to performance monitoring can help in identifying any variances and taking corrective action.

Which of the Following Controls Can Be Applied to Minimise