ICAEW ARF · Chapter 5 · Question 7 of 11
Which control best ensures that the company records liabilities only for goods it has actually received?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Supplier invoices are matched to goods received notes before being posted to the payables ledger
Explanation
Matching invoices to goods received notes confirms that goods were received before the liability is recorded, supporting the occurrence of purchases. Authorising orders controls what is ordered, not what is received. Supplier statement reconciliations are detective controls, and dual signatories control payments rather than the recording of liabilities.
More Controls over revenue and purchases MCQs
- Q9At the year end, a company reviews all goods received notes that have not yet been matched to supplier invoices and accrues for them…
- Q10Which of the following controls does NOT help to ensure the completeness of trade payables?
- Q11Which control best reduces the risk of a supplier invoice being paid twice?
- Q1Which control best reduces the risk of sales being made to customers who are unlikely to pay?
- Q2Which control best ensures that all goods despatched to customers are invoiced?