For effective internal control purposes, the accounts payable department generally should:
A) stamp, perforate, or otherwise cancel supporting documentation after payment is mailed.
B) obliterate the quantity ordered on the receiving department copy of the purchase order.
C) establish the agreement of the vendor's invoice with the receiving report and purchase order.
D) ascertain that each requisition is approved as to price, quantity, and quality by an authorised employee.

Question

Quizplus · Accepted Answer

Establishing the agreement of the vendor's invoice with the receiving report and purchase order allows for three-way matching, which helps to prevent payment for goods or services that were not received or were not ordered. Stamp, perforate, or otherwise canceling supporting documentation after payment is mailed (A) and obliterating the quantity ordered on the receiving department copy of the purchase order (B) do not provide effective internal control purposes, as they do not ensure accuracy and completeness of the accounts payable process. While ensuring that each requisition is approved as to price, quantity, and quality by an authorized employee (D) is important, it does not specifically address internal control purposes within the accounts payable department.

For Effective Internal Control Purposes, the Accounts Payable Department Generally