CIMA BA3 · Chapter 8 · Question 7 of 10
Which of the following is an authorisation control over purchases?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) A purchase order must be approved by a budget holder before it is sent to the supplier
Explanation
Approval of the order before commitment is an authorisation control. Checking goods received, reconciling supplier statements and sequential numbering are controls over accuracy and completeness of recording.
More Control of accounting systems MCQs
- Q9Who has the primary responsibility for preventing and detecting fraud in a company?
- Q10Which of the following is a limitation of any system of internal control?
- Q1What is the main purpose of internal controls in an accounting system?
- Q2Which of the following is an example of segregation of duties?
- Q3What is the main role of an external auditor of a limited company?