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:

Tax-deferred Plans

Retirement or investment accounts that allow taxpayers to postpone tax liabilities on earnings until funds are withdrawn in the future.

Retirement

The period in an individual's life during which they cease full-time work, typically due to age.

SIMPLE

An acronym for Savings Incentive Match Plan for Employees, a type of retirement savings plan that allows employees and employers to contribute to traditional IRAs set up for employees.

SEP Plans

Simplified Employee Pension (SEP) plans are retirement accounts that allow employers to make contributions towards their own and their employees' retirement savings.