Tag (SQ): Purchase Controls

A supplier fraud has just been identified by the management of Coral Ltd. The supplier had developed the technique of delivering goods that had not been ordered by Coral Ltd. and then subsequently raised invoices for the unordered goods which Coral Ltd. then paid. Which of the following controls would have prevented this fraud?

A   All invoices received are agreed to goods received notes

B   All goods received are agreed to purchase orders

C   All purchase orders are kept in a locked box in the purchases department office

D   All orders are authorized by the purchase’s director