1. To minimize the risk that agents in the purchasing department will use their positions for personal gain, the organization should

A.Rotate purchasing agent assignments periodically.

B.Request internal auditors to confirm selected purchases and accounts payable.

C.Specify that all items purchased must pass value-per-unit-of-cost reviews.

D.Direct the purchasing department to maintain records on purchase prices paid, with review of such being required each 6 months.

A yes. The risk of favoritism is increased when buyers have long-term relationships with specific vendors. Periodic rotation of buyer assignments will limit the opportunity to show favoritism. This risk is also reduced if buyers are required to take vacations.

B no. Confirmation does not enable internal auditors to detect inappropriate benefits received by purchasing agents or deter long-term relationships.

C no. value-per-unit-of-cost reviews could be helpful in assuring value received for price paid but do not directly focus on receipt of inappropriate benefits by purchasing agents.

D no. review of records every 6 months does not enable the organization to detect receipt of inappropriate amounts by an agent or deter relationships that could lead to such activity.