Which internal control activity is followed when management authorizes the purchasing department to order goods and services for the company?
A)Segregation of duties
B)Safeguarding of assets and records
C)Checks on recorded amounts
D)Clearly defined authority and responsibility

Question

Quizplus · Accepted Answer

Clearly defined authority and responsibility is followed when management authorizes the purchasing department to order goods and services for the company. This helps ensure that the purchasing department only orders what is necessary and authorized, and that purchases are properly recorded and reported. This also helps prevent unauthorized purchases or fraud. However, it should be noted that other internal control activities such as segregation of duties and checks on recorded amounts should also be in place to further enhance control over the purchasing process.

Which Internal Control Activity Is Followed When Management Authorizes the Purchasing