Key_Ch1 - 24. Internal Control - 20 minutes Easy a. This is...

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24. Internal Control - 20 minutes Easy a. This is an unsatisfactory situation. Purchase requisitions should be made in writing, not verbally, by departments to the purchasing agent. b. This is a satisfactory situation. There is a separation of duty between custody of assets and the related record-keeping responsibility. c. This is an unsatisfactory situation. There is not a separation of duty between the operation of receiving deliveries and custody of the assets. Receiving operations related to shipments from vendors should be handled by clerks who are not responsible for managing the storeroom where goods are kept. d. This is an unsatisfactory situation. There is not a separation of duty between the operation of preparing purchase orders and custody of the assets. Purchase orders should be prepared by clerks who are not responsible for managing the storeroom where goods are kept. e. This is a satisfactory situation. Blind counts should be performed in receiving operations. f.
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This note was uploaded on 06/01/2008 for the course MGMT 136 taught by Professor Zhou during the Spring '08 term at UC Irvine.

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