When the store manager receives a requisition note, he issues three copies of purchase order. Two copies of these orders are sent to the vendor and one copy remains in the stores file. When the goods are received, the store manager matches the purchase order with the invoice and forwards them to accounts payable department for payment of dues. Which of the following statement best describes the internal control over the purchasing process? Inadequate control over accounts payable. Inadequate segregation of duties. Inadequate segregation of duties. Adequate internal control exists.
When the store manager receives a requisition note, he issues three copies of purchase order. Two copies of these orders are sent to the vendor and one copy remains in the stores file. When the goods are received, the store manager matches the purchase order with the invoice and forwards them to accounts payable department for payment of dues. Which of the following statement best describes the internal control over the purchasing process? Inadequate control over accounts payable. Inadequate segregation of duties. Inadequate segregation of duties. Adequate internal control exists.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![When the store manager receives a requisition note, he issues three copies of purchase order. Two
copies of these orders are sent to the vendor and one copy remains in the stores file. When the
goods are received, the store manager matches the purchase order with the invoice and forwards
them to accounts payable department for payment of dues.
Which of the following statement best describes the internal control over the purchasing process?
Inadequate control over accounts payable.
Inadequate segregation of duties.
Inadequate segregation of duties.
Adequate internal control exists.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1ce45bf8-1dd4-467e-9505-46379bdd644c%2Fa895c9f3-3979-47f1-a080-e5143829d9b4%2Ftkrt08_processed.png&w=3840&q=75)
Transcribed Image Text:When the store manager receives a requisition note, he issues three copies of purchase order. Two
copies of these orders are sent to the vendor and one copy remains in the stores file. When the
goods are received, the store manager matches the purchase order with the invoice and forwards
them to accounts payable department for payment of dues.
Which of the following statement best describes the internal control over the purchasing process?
Inadequate control over accounts payable.
Inadequate segregation of duties.
Inadequate segregation of duties.
Adequate internal control exists.
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