Final answer:
The receiving department can strengthen internal control over merchandise purchases by verifying received items, reporting discrepancies, restricting unauthorized access, and maintaining accurate records.
Step-by-step explanation:
To strengthen the system of internal control over the purchase of merchandise, a company's receiving department should perform several key functions:
- Verify the quantities and conditions of items received against the purchase order and the packing slip.
- Report discrepancies immediately to the appropriate personnel.
- Ensure that received goods are not accessible to unauthorized persons.
- Maintain accurate records of all received items.
These actions help to ensure that only authorized purchases are accepted and that the inventory records accurately reflect the received items. By doing so, the receiving department plays a critical role in safeguarding the assets of the company and maintaining financial integrity.