Question

Match the best control plan to solve the control problem

(1) The accounting department requisitioned 3 computers. After not getting the computers for 3 weeks they ordered 3 more.
(2) An office supplies store shipped unordered paper and other products to a company. Those goods were received, but turned out to be substandard.
(3) Receiving personnel stole goods as they came in. they completed a prenumbered PO, but then said the goods were lost on the way to the warehouse.
(4) An accounting clerk stole several Purchase Orders and ordered personal goods for his home. The bill for those goods was sent to the company.
(5) A purchasing agent directs businessto his bother-in-law who charges higher prices than other vendors.
(A) Authorized vendor file
(B) Requisition confirmation to originating department
(C) Prenumbered purchase orders
(D) Independent authorization to receive
(E) Internal transfer procedures

Answer 1

To address the control problems presented, matching control plans include Requisition confirmation to originating department, Authorized vendor file, Prenumbered purchase orders, Independent authorization to receive, and Internal transfer procedures to prevent unauthorized orders, ensure quality of goods, stop theft, and reduce nepotism in vendor selection.

Step-by-step explanation:

To match the best control plan to the respective control problem from the scenarios provided, we will use the following options: (A) Authorized vendor file, (B) Requisition confirmation to originating department, (C) Prenumbered purchase orders, (D) Independent authorization to receive, and (E) Internal transfer procedures.

1. Requisition confirmation to originating department is the best control plan for the issue where the accounting department ordered more computers after not receiving the initial order for three weeks. This will help ensure that orders are tracked and confirmed before additional reqeusts are made.
2. For the scenario where substandard goods were received, having an authorized vendor file would help prevent ordering from unreliable sources, ensuring that only quality items are procured from reputable suppliers.
3. Preventing theft by receiving personnel would be best addressed by implementing independent authorization to receive, which would involve an additional check by someone not involved in the initial receiving process.
4. To prevent an accounting clerk from stealing purchase orders, prenumbered purchase orders should be used to track and account for all orders correctly, making unauthorized purchases more difficult.
5. Finally, to address the issue of a purchasing agent directing business to a family member at higher prices, an authorized vendor file would ensure that business is only conducted with pre-approved vendors based on their competitiveness and reliability.