Which of the following is an independent check on performance?
A)The Purchasing Agent physically reviews the contents of shipments and compares them with the purchase orders he has placed.
B)Production teams perform quality evaluations of the products that they produce.
C)The General Manager compares budgeted amounts with expenditure records from all departments.
D)Petty cash is disbursed by Fred Haynes.He also maintains records of disbursements,places requests to finance to replace expended funds,and periodically reconciles the petty cash balance.

Question

Quizplus · Accepted Answer

The General Manager comparing budgeted amounts with expenditure records from all departments is an independent check on performance as it ensures that the actual expenditures do not go beyond the budgeted amounts. This is done by someone who is not directly involved in the actual expenditures, thus providing an independent review of the organization's financial performance. Options A and B involve internal quality control measures while option D involves an internal control procedure.

Which of the Following Is an Independent Check on Performance