Discuss the key internal controls that should be present in the receiving goods and services function in the acquisitions and payment cycle

What will be an ideal response?

For good internal control over the receiving goods and services function, most companies require that the receiving department initiate a receiving report as evidence of the receipt and examination of the goods. One copy of the report is sent to the raw materials storeroom and another to the accounts payable department for their information needs. To prevent theft and misuse, it is important that the goods be physically controlled from the time of their receipt until their disposal. The personnel in the receiving department should be independent of the storeroom personnel and the accounting department. In addition, the accounting records should transfer responsibility for the goods as they are transferred from receiving to storage and from storage to manufacturing.