Vendors should be approved by Management before purchase department executes an order. If this is not done, then which of the following situations may arise?

Related MCQs

• While vouching wages, auditor should examine whether there is proper segregation of duties. Which of the following activities should not be done by same department?
• Which of the following is most crucial to a purchase department?
• The auditor should state the reasons for his reservations in audit report and should try to quantify the effect on them. This should be done in case he has expressed _ i) A qualified opinion ii) an unqualified opinion with emphasis of matter paragraph iii) An adverse opinion IV) a disclaimer of opinion
• Depreciation does not arise form _______
• The auditor has serious concern about the going concern of the company. It is dependent on company’s obtaining a working capital loan from a bank which has been applied for. Then management of the company has made full disclosure of these facts in the notes to the balance sheet. The auditor is satisfied with the level of disclosure. He should issue_
• The management of a company, to which AS3 is not applicable, does not include statement of cash flows in its annual report. The auditor should express
• Purchase returns should be vouched with the help of
• Which of the following statements is not correct regarding removal of first auditor before expiry of the term?
• Which of the following statements is not correct regarding removal of first auditor before expiry of the term?
• Goods purchased but not recorded in the purchase register is ________________