The Receiving Clerk at Wattana Technologies Examines Incoming Shipments and Checks

question 42

Multiple Choice

The receiving clerk at Wattana 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 related to the clerk's activities?

• A)Controls are adequate under the current system.
• 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)Vendor invoices should be approved for payment by the shipping clerk after the purchase order and receiving report are reconciled.

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Definitions:

Consumer Surplus

The gap between what consumers are prepared to pay for a product or service and what they end up spending.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive, reflecting their net gain.

Tax

A mandatory charge or alternative form of financial levy extracted from a taxpayer by governmental authorities for the aim of supporting governmental spending and numerous public financial commitments.

Diversity

entails the inclusion and representation of different types of people and viewpoints in a group, organization, or society, valuing differences in race, gender, age, cultural background, etc.