Receiving
WHY?
Receiving involves the acceptance and inspection of goods and services purchased by the organization. This process is vital as it ensures that the items received match the purchase specifications and quality standards. Implementing internal controls in the receiving process is essential to verify the accuracy and quality of received goods, prevent acceptance of unauthorized or substandard items, and maintain accurate inventory records. Effective internal controls enhance accountability, improve inventory management, and ensure the reliability of financial reporting.
HOW?
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1. Segregation of Duties
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2. Procedural Controls
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3. Authorization Controls
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4. Documentation and Records
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5. Review and Monitoring
Q&A
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