Invoices paid twice may result in overpayments to vendors. Choose the best control activity to address this risk.
A) Comparison of the total of the authorized vouchers submitted for payment to the total in the cash disbursements journal for a specific period
B) Comparison of payment information with purchase order and receiving report information
C) Vendor invoice, payment voucher and supporting documentation must be tagged or cancelled to prevent reuse.
D) Take advantage of all supplier discounts if favorable to the company.

Question

Quizplus · Accepted Answer

Option C directly addresses the risk of invoices being paid twice by ensuring that once an invoice and its supporting documentation have been used for payment, they are marked in such a way that prevents them from being presented for payment again. This control activity effectively reduces the risk of overpayments.

Invoices Paid Twice May Result in Overpayments to Vendors