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Your firm is the external auditor of Bestwood Engineering Ltd., which manufactures components for motor vehicles and sells them to motor vehicle manufacturers and wholesalers. It has sales of $25 million and a profit before tax of $1 million. The company has a new financial controller, who has asked for your advice on controls in the company's purchasing system. Bestwood has separate accounting, purchasing, and receiving departments. Most purchases are requisitioned by the production department, but other departments are able to raise requisitions for goods and services. The purchasing department is responsible for obtaining goods and services for the company at the lowest price that is consistent with the required delivery date and quality, and for ensuring their prompt delivery. The accounting department is responsible for obtaining authorization of purchase invoices before they are input into the computer, which posts them to the accounts payable sub-ledger and the general ledger. The accounting records are kept on a computer and standard off-the-shelf accounting software is used. The accounting software maintains the accounts payable sub-ledger, accounts receivable sub-ledger, general ledger, and payroll. The company does not maintain inventory records because it believes the cost of maintaining these records outweighs the benefits. The financial controller has explained that services include gas, electricity, telephone, repairs, and the short-term rentals of equipment and vehicles. (a) What procedures should be incorporated in the purchasing department to control the purchase and receipt of goods? (Several choices may be correct.) Orders should be raised on receipt of an appropriately approved requisition Bestwood should identify a list of approved suppliers Orders should be placed over the phone by an authorized purchasing employee Blank order forms should be kept in a secured location Goods received should be inspected after they have been delivered Details of goods received should be recorded on a pre-numbered goods received note Outstanding orders should be tracked