The Receiving Clerk at Folding Squid Technologies Examines Incoming Shipments

question 37

Multiple Choice

The receiving clerk at Folding Squid Technologies examines incoming shipments and checks their purchase order numbers.A receiving report is then sent to accounts payable,where it is reconciled with the relevant purchase orders and invoices and payment is authorized.Which of the following would correct control weaknesses,if any,related to these activities?

• A) Vendor invoices should be approved for payment by the shipping clerk after the purchase order and receiving report are reconciled.
• B) Vendor invoices should be approved for payment by the purchasing manager.
• C) Purchase orders and receiving reports should be reconciled by the purchasing manager.
• D) Controls are adequate under the current system.

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Definitions:

Conditions of Worth

Standards imposed by others that one must meet to be considered worthy of love or positive regard.

Positive Self-report

A method of gathering data in which individuals report their own behavior, feelings, or attitudes in a positive light.

Actualization Tendency

An innate drive in humans to grow, improve, and realize their fullest potential.

Maladjustment

A condition in which an individual's adaptation to life circumstances is considered inadequate or dysfunctional.