Which of the following is the most effective control procedure to detect vouchers that were prepared for the payment of goods that were not received?
A) Count goods upon receipt in storeroom.
B) Match purchase order, receiving report, and vendor's invoice for each voucher in accounts payable department.
C) Compare goods received with goods requisitioned in receiving department.
D) Verify vouchers for accuracy and approval in internal audit department.

Question

Quizplus · Accepted Answer

Matching the purchase order, receiving report, and vendor's invoice for each voucher in the accounts payable department is the most effective control procedure to detect vouchers that were prepared for the payment of goods that were not received. This ensures that the goods were received and the vendor's invoice matches the purchase order and the receiving report. Counting goods upon receipt in the storeroom, comparing goods received with goods requisitioned in the receiving department, and verifying vouchers for accuracy and approval in the internal audit department are all important control procedures but not as effective as matching the purchase order, receiving report, and vendor's invoice for each voucher in the accounts payable department.

Which of the Following Is the Most Effective Control Procedure