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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Pear international co
Hello Sir ken
There is a deficiency in internal control of Pear co given in scenario that “Purchase requisition for new asset is authorized by production supervisors”
Now for its explanation would it be right to write that :Production supervisors are not so senior to authorize capital expenditure hence this may lead to unnecessary purchase of new assets :
For its control would it be right ti write that “Production supervisor should only authorize low value items, any high value items should be authorized by the board”
For its TOC would it be right ti write that “Ask for a sample of authorized capital expenditure forms and see if high value items have been authorized by the board”
All fine.