Allowing only certain employees to order goods and services for the company is an example of what internal control procedure?
A) Segregation of duties
B) Safeguarding of assets and records
C) Independent verifications
D) Proper authorizations

Question

Quizplus · Accepted Answer

Proper authorizations refer to ensuring that only individuals with the appropriate authority are able to approve and initiate transactions, such as ordering goods and services. This helps to prevent unauthorized or unnecessary purchases and ensures that resources are used efficiently. Segregation of duties refers to separating responsibilities among different individuals to reduce the risk of errors or fraud, safeguarding of assets and records refers to protecting important information and resources from loss or theft, and independent verifications refer to checking and verifying data and transactions by someone other than the person who initiated them.

Allowing Only Certain Employees to Order Goods and Services for the Company