For good internal control:
A) the purchasing agent should also receive the goods.
B) the purchasing agent should also approve the invoice for payment.
C) the purchasing agent should not receive the goods or approve the invoice.
D) the purchasing agent should not order the goods.

Question

Quizplus · Accepted Answer

It is important to separate duties in the purchasing process to ensure proper internal control. The purchasing agent should not receive the goods as they may be tempted to receive goods that are of lower quality or quantity. Similarly, the purchasing agent should not approve the invoice for payment as they may be tempted to approve a higher invoice to benefit themselves or the supplier. The best practice is to have a separate person receive the goods and another person approve the invoice for payment.

For Good Internal Control