ACCA AA · Chapter 8 · Question 6 of 12
What is the main purpose of matching a supplier invoice to the related purchase order and goods received note before payment?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) To ensure that the company only pays for goods that were authorised and actually received
Explanation
The three-way match confirms that the goods were properly ordered, that they were received in the correct quantity and condition, and that the invoice reflects those goods at the agreed price. It prevents payment for goods not ordered or not received.
More Internal control systems MCQs
- Q8Which of the following controls would be most effective in reducing the risk of theft of high-value inventory from a warehouse?
- Q9Which of the following bank reconciliation procedures represents the strongest control?
- Q10Under ISA 265, how must the auditor communicate significant deficiencies in internal control identified during the audit?
- Q11Which of the following is a test of controls rather than a substantive procedure?
- Q12Which of the following is an application control rather than a general IT control?