The internal control process that requires the approval of the purchase return transaction take place before the preparation of the debit memo, will help to minimize the risk of:
A)Fictitious returns
B)Omitted returns
C)Invalid returns
D)Wrong vendor

Question

Quizplus · Accepted Answer

Requiring approval before preparing a debit memo for a purchase return helps ensure that the return is valid, meaning it was actually authorized and the returned item is in the appropriate condition. This would help minimize the risk of invalid returns, as well as potentially reducing the risk of fictitious or omitted returns. However, this process may not necessarily address the risk of selecting the wrong vendor for the return.

The Internal Control Process That Requires the Approval of the Purchase