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Commerce · Q193

Auditing

Graduate and Post Graduate · Commerce · question 193

Q193

An internal auditor discovered that fictitious purchases have been recorded by the purchase clerk. This indicates absence of which control?

A.
Purchase invoices are independently matched with purchase orders and goods received notes
Answer
B.
Goods received notes requires the signature of individual who authorized the purchase
C.
Routine checks are performed by internal auditor fortnightly
D.
Purchase function and production function are clubbed in one department

Answer: Option A

Solution

Answer: Option A
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