ICAEW ARF · Chapter 5 · Question 10 of 11
Which of the following controls does NOT help to ensure the completeness of trade payables?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Supplier invoices are checked for arithmetical accuracy before being posted
Explanation
Completeness concerns whether all liabilities that should be recorded have been recorded. Reconciling supplier statements reveals invoices the company has not recorded, sequence checks on goods received notes identify receipts not processed, and the year-end review identifies uninvoiced receipts. Checking arithmetic addresses the accuracy of invoices already received, not whether any are missing.
More Controls over revenue and purchases MCQs
- 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?
- Q3A company sends statements to all credit customers each month. Which risk does this control mainly address?
- Q4Which control best reduces the risk that credit notes are used to conceal the theft of customer receipts?
- Q5At a client, the sales clerk who raises sales invoices can also change the prices held in the system's standing data. What is the main…