Question

A manager suspects that certain employees are ordering merchandise for themselves over the Internet without recording the purchase or receipt of the merchandise. When vendors' invoices arrive, one of the employees approves the invoices for payment. After the invoices are paid, the employee destroys the invoices and related vouchers. To trace whether this is actually happening, it would be best to begin tracing from the:

A. Cash disbursements.
B. Approved vouchers.
C. Receiving reports.
D. Vendors' invoices.

Answer 1

To trace whether employees are ordering merchandise for themselves without recording the purchase, start by tracing from the vendors' invoices.

Step-by-step explanation:

The best starting point to trace whether employees are ordering merchandise for themselves without recording the purchase or receipt would be to trace from the Vendors' invoices.

This is because the suspicion is that the employees are ordering merchandise and not recording it, so the invoices from the vendors would show evidence of these unauthorized purchases. By examining the vendors' invoices, the manager can determine if there are any purchases that do not match the recorded transactions.

From there, the manager can then investigate further by checking the other records such as the approved vouchers, receiving reports, and cash disbursements to cross-reference the information.