The Primary Control in the Purchasing Side of the Finance

question 5

Multiple Choice

The primary control in the purchasing side of the finance cycle is that:

• A) only purchasing officials should place the actual order.
• B) payments only be made by an independent treasury function based on approved invoices from other departments.
• C) payments only be made by the department that placed the order.
• D) an audit trail must include a cost justification and vendor selection listing.

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Definitions:

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The process of converting ideas and thoughts into a communicable form, often involving language or symbols, in the context of communication.

Decoding

The process of interpreting and understanding messages or information received from others.

Transferring Thoughts

The process of conveying ideas or feelings from one mind to another through speech, writing, or another medium.

Encoding

The process of converting information or data into a particular form, especially for communication or processing.