The receiving clerk at Folding Squid Technologies examines incoming shipments and reconciles their contents with the relevant purchase orders.A receiving report is then sent to accounts receivable and the vendor's invoice is approved for payment.Which of the following would correct control weaknesses,if any,related to these activities?

Question

Quizplus · Accepted Answer

The control weakness in the current system is that the receiving clerk has sole responsibility for reconciling the purchase orders and receiving reports. To enhance control, a different individual, such as accounts payable, should reconcile the two documents to ensure accuracy. Option A would not be a feasible solution, as the shipping clerk may not have the necessary authority to approve payments. Option C places too much responsibility on the receiving clerk, which could lead to errors or fraud. Option D is incorrect, as control weaknesses exist.

The Receiving Clerk at Folding Squid Technologies Examines Incoming Shipments