Question

An organization has a goal to prevent the ordering of inventory quantities in excess of its needs. One individual in the organization wants to design a control that requires a review of all purchase requisitions by a supervisor in the user department prior to submitting them to the purchasing department. Another individual wants to institute a policy requiring agreement of the receiving report and packing slip before storage of new inventory receipts. Which of these controls is (are) relevant in achieving the stated goal? Explain your answer.

Answer 1

Answer:

The first one. "review of all purchase requisitions by a supervisor in the user department prior to submitting them to the purchasing"

Explanation:

The second control is not relevant for the current problem. It will make sure the amount ordered matches the amount received but will not stop the excess in quantities.

Whil the other porposal, running all request through a single person will most defenitely solve the situation. The company will have one person in charge of the responsability of ensuring the request are met with their needs and cancel excessive orders.