ICAEW ARF · Chapter 5 · Question 9 of 11
At the year end, a company reviews all goods received notes that have not yet been matched to supplier invoices and accrues for them. Which assertion does this control mainly address?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Completeness of trade payables and accruals
Explanation
Goods received before the year end but not yet invoiced are liabilities at the year end. Reviewing unmatched goods received notes ensures these liabilities are recorded, which addresses completeness. Existence and occurrence concern whether recorded items are genuine, and inventory valuation concerns the lower of cost and net realisable value.
More Controls over revenue and purchases MCQs
- 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?
- 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?