Goods received department


Question 1:

Why is it significant that a department other than Purchasing Department must raise a purchase requisition?

Question 2:

Even with the separate Purchasing Department (i.e. separate from the department which raises the purchase requisition), there is still a risk of fraud through staff in Purchasing Department. In what way could a fraud happen, and how could controls be instituted to reduce the risk of such the fraud?

Question 3:

Why is each purchase invoice not sent with goods to Goods Received Department?

Question 4:

Why should the Goods Received Department not admit goods where there is no purchase order?

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Auditing: Goods received department
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