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A receiving department receives copies of purchase orders for use in identifying and recording inventory receipts.The purchase orders list the name of the vendor and the quantities of the materials ordered. A possible error that this system could allow is:_____
A. Payment to unauthorized vendors.
B. Payment for unauthorized purchases.
C. Overpayment for partial deliveries.
D. Delay in recording purchases.

Respuesta :

Answer:

C

Explanation:

This process is an internal audit way of ensuring an effective procurement procedure.

Using the method , the quantity of all the items delivered are cross checked to the quantity in the purchase order to ensure completeness,

One of its limitation is that in the situation of a partial delivery , it may not be able to discover over-payment as bank information is not used along .

Foe a more effective result , it is advised that bank information should be incorporated into the internal audit procedure.

The possible error that this system could allow is C. Overpayment for partial deliveries.

The following information should be considered:

  • This process represent the audit in the internal way so that it provides the assurance related to the procurement procedure.
  • The quantity of the items i.e. delivered should be cross-checked for completeness purpose.
  • The partial delivery represent the limitation. In this, the overpayment is not discovered due to not using the bank information.

Learn more: brainly.com/question/17429689

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