The purchasing manager at Folding Squid Technologies has responsibility for reviewing and authorizing purchase orders.He also reviews receiving reports,approves or corrects them,and authorizes the cashier to pay vendor invoices.Which of the following would correct control weaknesses,if any,related to these activities?

Question

Quizplus · Accepted Answer

Accounts payable should reconcile purchase orders, receiving reports, and invoices to ensure accuracy and prevent fraudulent activity such as duplicate payments or payment for goods not received. This will also ensure that the purchasing manager is not solely responsible for these tasks and there are checks and balances in place. Reviewing vendor invoices to ensure correctness is a good practice, but it doesn't address the control weaknesses related to the entire process. Reviewing invoices by accounts receivable is also not appropriate as accounts receivable deals with collecting payments from customers, not paying vendors. The statement "Controls are adequate under the current system" is not a valid option as it doesn't address the control weaknesses identified in the question.

The Purchasing Manager at Folding Squid Technologies Has Responsibility for Reviewing