Answered: Why should the function of…

Why should the function of requisitioning the purchase of goods be segregated from the function of issuing purchase orders?

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 3CYBK

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Question

1. Why should the function of requisitioning the purchase of goods be segregated from the function of issuing purchase orders?

2. Explain how an automated matching process works regarding the payment of accounts payable

3. What control objective is addressed by having prenumbered receiving documents

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