Answered step by step
Verified Expert Solution
Question
1 Approved Answer
During the evaluation of the internal control system for procurement, the administration noticed that there is a weakness in internal control over the preparation of
During the evaluation of the internal control system for procurement, the administration noticed that there is a weakness in internal control over the preparation of purchase documents and documents and the registration process, which leads to errors in the procurement records that lead to a probability of 60% to achieve losses to the company estimated at 40,000, and the administration has studied several alternatives to strengthen internal control, including 1- Authorizing a company to create a computerized accounting system to prepare and migrate documents at a cost of 5000, and this reduces the probability of loss to 50% 2- Sending employees to undergo training courses for a fee of 3000 dinars, and this reduces the probability of loss to 40% 3- Appointing an expert in the procurement management to set up a mechanism for controlling and controlling purchases with an annual salary of 4000 dinars, and this reduces the possibility of loss to 30% Required: What is the appropriate alternative according to the information above, justifying the answer, using the justification of each alternative lal fi alt
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started