In the order goods stage of the expenditure cycle,which of the following is designed to reduce the risk of collusion and fraud?
A)Purchase orders are raised only once each week.
B)The decision to purchase more goods or materials is made by the purchasing officer.
C)The person who places orders is different from the one who is responsible for maintenance of the list of approved suppliers.
D)Purchase order forms are pre-numbered.

Question

Quizplus · Accepted Answer

The separation of duties, where the person placing orders is different from the one maintaining the list of approved suppliers, reduces the risk of collusion and fraud by ensuring that no single individual has control over the entire purchasing process, thereby increasing oversight and accountability.

In the Order Goods Stage of the Expenditure Cycle,which of the Following