When reviewing the controls and procedures in the acquisition and payment cycle,
A) companies cannot record the liability for the acquisition until the invoice is received from the vendor.
B) the purchasing department has the responsibility for verifying for appropriateness of the acquisition.
C) personnel who record the acquisitions should not have access to cash or other assets.
D) the accounts payable department should account for all receiving reports to assure that the occurrence objective is satisfied.

Question

Quizplus · Accepted Answer

Segregation of duties is a key control in the acquisition and payment cycle. Personnel who record acquisitions should not have access to cash or other assets to prevent fraud or errors.

When Reviewing the Controls and Procedures in the Acquisition and Payment