Which of the following is an independent check on performance?
A)The Purchasing Agent physically reviews the contents of shipments and compares them with the purchase orders he has placed.
B)Production teams perform quality evaluations of the products that they produce.
C)The General Manager compares budgeted amounts with expenditure records from all departments.
D)Petty cash is disbursed by the Fred Haynes in the Cashier's Office.He also maintains records of disbursements,places requests to finance to replace expended funds,and periodically reconciles the petty cash balance.

Question

Quizplus · Accepted Answer

The General Manager comparing budgeted amounts with expenditure records is an independent check on performance as it ensures that departments are not over-budget and are spending within their means. Options A, B, and D are all internal controls but not necessarily independent checks on performance.

Which of the Following Is an Independent Check on Performance