ACCA Audit and Assurance (F8) Practice Exam 2025 – The Complete All-in-One Guide to Achieve Exam Success

A key control area for purchases is the management of authorized suppliers. This is crucial because it helps ensure that the organization only engages in transactions with suppliers who are capable and trustworthy. By maintaining a list of authorized suppliers, a business can mitigate risks associated with fraud, poor quality, and reliability. This control measure enables the organization to ensure that vendors meet specific criteria for quality, price, and delivery, which fosters a stable procurement process and helps in managing costs effectively.

The oversight and vetting of suppliers are vital components in the purchasing process. They protect the organization from entering into agreements with unreliable or substandard suppliers, ensuring that the goods and services procured fulfill the company's requirements and adhere to its standards.

In contrast, while the quality of goods received, budget approvals, and sales forecasting are important components of the overall purchasing and operational process, they do not play a foundational role in establishing a secure and efficient purchasing control system in the same way that the vetting and management of authorized suppliers do. Quality controls focus on the end product rather than the procurement source, budget approvals relate to financial management and controls, and sales forecasting is primarily concerned with predicting revenue rather than directly influencing purchasing strategies.