In the following situation,which internal control procedure needs strengthening?
At Hofstra Services,the accounting clerk fills out unnumbered purchase order forms for purchases of supplies.An operations engineer completes the form with a detailed description of the supplies being ordered,and the operations manager approves the purchase and passes the purchase order back to the accountant for processing.

Question

In the following situation,which internal control procedure needs strengthening? 
At Hofstra Services,the accounting clerk fills out unnumbered purchase order forms for purchases of supplies.An operations engineer completes the form with a detailed description of the supplies being ordered,and the operations manager approves the purchase and passes the purchase order back to the accountant for processing.

Quizplus · Accepted Answer

The internal control procedure that needs strengthening is the use of unnumbered purchase order forms. Unnumbered forms can easily be lost, duplicated or misused, which could lead to fraudulent purchases or the possibility of over ordering. Using prenumbered purchase order forms would provide Hofstra Services with the advantage of easier tracking and monitoring of supply orders, which improves documentation and record keeping.

In the Following Situation,which Internal Control Procedure Needs Strengthening