CPP Purchase Requisition & Order Processing 4

Question 1

What is the significance of a PO number in the order processing workflow?

Accepted Answer

It uniquely identifies the transaction and links documents across the procure-to-pay cycle

Answer

The PO number uniquely identifies a transaction, linking the requisition, order, receiving report, and invoice throughout the P2P cycle.

Question 2

Which of the following BEST justifies requiring a purchase requisition before issuing a PO?

Accepted Answer

It ensures budget availability and internal authorization before committing funds

Answer

The requisition process verifies budget availability and secures internal authorization before financial commitments are made.

Question 3

An organization uses a procurement card (P-card) primarily to:

Accepted Answer

Streamline low-value, routine purchases with reduced administrative burden

Answer

P-cards streamline low-value, routine purchases by reducing the paperwork associated with formal POs and requisitions.

Question 4

When a supplier's delivery contains fewer items than ordered, the buyer should:

Accepted Answer

Issue a partial receipt and hold payment until the shortage is resolved

Answer

A partial receipt documents the shortage, and payment should be held or adjusted until the full order is fulfilled or the issue resolved.

Question 5

Which of the following is an example of an internal control weakness in the requisition process?

Accepted Answer

Allowing the requisitioner to also approve their own requisition

Answer

Allowing self-approval violates segregation of duties, a fundamental internal control that prevents fraud and errors.

(CPP) Certified Purchasing Professional Practice Test