Janet is the purchasing agent at Frameco Manufacturing. Her duties include vendor selection and ordering materials. Due to a recent economic downturn and resulting cut backs, Janet has been assigned the additional duty or preparing receiving reports after comparing the goods received to the purchase order. This is an example of:

Question

Quizplus · Accepted Answer

Because Janet's job as a purchasing agent involves preparing the purchase orders and she is also comparing items received to the purchase orders, there is a lack of segregation of duties. This increases the potential for the misappropriation of assets, but there is not enough information given to determine that a misappropriation has indeed occurred.

Janet Is the Purchasing Agent at Frameco Manufacturing