Asked by Joshua Palesano on Jun 13, 2024
Verified
Proper internal control would require that a department manager inform the purchasing department of its needs for additional merchandise by preparing and signing a purchase requisition which lists the merchandise requested to be purchased.
Purchase Requisition
A document used in the procurement process to request authorization for a purchase order.
Department Manager
An individual responsible for overseeing the operations, personnel, and budget of a specific department within a company.
- Gain an understanding of the necessary documentation for purchasing and managing cash flow.
- Grasp the inaccuracies that can arise from not following proper internal control procedures.
Verified Answer
SC
Simone CastroJun 15, 2024
Final Answer :
True
Explanation :
This statement is true as it follows the basic principle of internal control, which is to establish clear communication channels and documentation for all transactions. A purchase requisition helps to ensure that purchases are authorized and necessary, and it provides a paper trail for tracking and auditing purposes.
Learning Objectives
- Gain an understanding of the necessary documentation for purchasing and managing cash flow.
- Grasp the inaccuracies that can arise from not following proper internal control procedures.
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