The internal control that requires "new vendors and changes to vendor file be approved" satisfies the objective of
A)occurrence.
B)completeness.
C)accuracy.
D)posting and summarization.

Question

Quizplus · Accepted Answer

The objective of occurrence is to ensure that all recorded transactions actually occurred. Requiring approval for new vendors and changes to vendor files helps ensure that vendors are legitimate and have been properly vetted before being added to the vendor file, which reduces the risk of fictitious vendors being added and transactions being recorded for them.

The Internal Control That Requires "New Vendors and Changes to Vendor