Integrated Business Solutions - May 2026 RTP

Mr. Amit Rathod, exercises complete control over the purchasing function, including placing purchase orders, receiving goods, and approving payments to suppliers. There is no independent review or supervisory oversight of his actions by another responsible official, resulting in a lack of segregation of duties within the procurement cycle.

2. Employees of the company have been performing the same roles for more than five years without any job rotation. In particular, the Finance Manager, Miss Neha Shah, has continued in the same position since joining the company, without any periodic rotation or reassignment of responsibilities.

Mr. Vikas Gupta, who is responsible for physical custody of inventory, also maintains the inventory records. This concentration of custodial and recording functions in the same individual weakens the internal check mechanism and increases the risk of misstatement or misappropriation going undetected. Regards, N. Joshi CA. Nitin Joshi 17 <“ 026 EXAMINATION Multiple Choice Question 2.1 Analyzing the company's approach to cost reduction, which of the following can be the potential risks of such a course of action? (a) Focus…