Key Segregation of Duties in the Purchasing Process

Question 1

Preparation and approval of purchase order

Answer 1

Purchasing Department

Question 2

Receipt, counting, and inspection of purchased materials

Answer 2

Receiving Department

Question 3

Receipt of vendor invoices and matching them with supporting documents

Answer 3

Accounts Payable

Question 4

Coding (or checking) of account distributions

Answer 4

Accounts Payable

Question 5

Updating of accounts payable records

Answer 5

Accounts Payable

Question 6

Signing and mailing of vendor checks

Answer 6

Cashier

Question 7

Reconciliation of voucher register to general ledger

Answer 7

Accounts Payable

Question 8

Four key segregation of duties functions in the purchasing process.

Answer 8

1. The purchasing function should be segregated from the requisitioning and receiving functions.
2. The invoice-processing function should be segregated from the accounts payable function.
3. The disbursement function should be segregated from the accounts payable function.
4. The accounts payable function should be segregated from the general ledger function.