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1. Green-Green Market Ltd is a wholesaler supplying fresh fruits and vegetables to a number of large retail grocery stores across South Africa. Green-Green Market Ltd purchases inventory (fruits and vegetables) directly from farmers and repackage the fruits and vegetables into smaller units for household consumption, before sales to retail stores take place. The following control procedure takes place in the acquisition and payments cycle:
On transfer of goods from the receiving bay to the warehouse, the stores clerk, Mr Stork, signs the goods received note to acknowledge acceptance of the goods.
Which one of the following alternatives best describes the correct control procedure?
a.
On transfer of goods from the receiving bay to the warehouse, the stores clerk, Mr Stork, performs at least a superficial test of the condition of the goods, before signing the goods received note to acknowledge acceptance of the goods.
b.
On transfer of goods from the receiving bay to the warehouse, the stores clerk, Mr Stork, should accept inventory short delivered but identify such goods clearly on the goods received note, before both parties (the deliverer and the receiver) sign for the amendments made.
c.
On transfer of goods from the receiving bay to the warehouse, the stores clerk, Mr Stork, compares the physical goods to the goods received note before signing the goods received note to acknowledge acceptance of the goods.

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