Which of the controls below would be least effective at preventing a company from ordering goods at a price higher than market?

Question

Quizplus · Accepted Answer

Variance analysis of actual expenses to budgeted expenses may not be effective in preventing a company from ordering goods at a price higher than market as it focuses on comparing actual expenses to budgeted expenses and may not detect the overpricing of goods. The other controls mentioned, such as only ordering from approved vendors, soliciting competitive bids, and frequent review and updates to vendor price lists, are all more likely to prevent a company from ordering goods at a higher price than market value.

Which of the Controls Below Would Be Least Effective at Preventing