Internal Control Activities Within the Purchasing Process, Identified as Segregation

question 33

Multiple Choice

Internal control activities within the purchasing process, identified as segregation of duties, would include all of the following, except:

• A)Responsibility for authorization, custody, and record keeping are to be assigned to different individuals.
• B)Duties related to requisitioning, ordering, purchase approval, receiving, inventory control, accounts payable, and general accounting are to be delegated to separate departments or individuals.
• C)Complete separation of inventory custody from inventory accounting.
• D)Purchasing records and programs must be protected from unauthorized access.

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Definitions:

Public Good

Every member of a society has access to certain goods or services without having to pay, thanks to provision by governmental agencies or private organizations or individuals, all without the motivation for profit.

Asymmetric Information

A situation where one party in a transaction has more or better information than the other, potentially leading to an imbalance in decision-making or outcomes.

Fee-For-Pay

A pricing model where services are provided and charged based on specific transactions or uses rather than a subscription or blanket fee.

Out-Of-Pocket Costs

Expenses for medical care that aren't reimbursed by insurance, including deductibles, co-payments, and coinsurance.