Day: January 29, 2026

Alex Maintenance Ltd is a large property management company that uses many contractors for building, design, and decorating.

Which ONE of the following internal controls are most likely to prevent services from being used for the private purposes of employees?

Select ONE answer:

1. Purchase orders should only be placed with authorised contractors
2. Purchase invoices are matched to authorised purchase orders
3. Purchase orders are processed by the buying department following authorisation by ANY project employee
4. Purchase requisitions must be signed by TWO team members for any given project

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – 1 is not correct as inappropriate orders could still be made with authorised suppliers. 2 is not correct as once inappropriate orders have been authorised, matching the order with the invoice will not prevent that act having taken place.

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