A client recorded a payable for a large purchase twice.Which of the following controls would be most likely to detect this error in a timely and efficient manner?
A)Footing the purchases journal.
B)Reconciling vendors' monthly statements with subsidiary payable ledger accounts.
C)Tracing totals from the purchases journal to the ledger accounts.
D)Sending written quarterly confirmations to all vendors.

Question

Quizplus · Accepted Answer

Reconciling vendors' monthly statements with subsidiary payable ledger accounts would detect if a payable was recorded twice because the amount owed to the vendor would be overstated on both the statement and the ledger account. This control is more efficient than footing the purchases journal, as it is specific to the vendor and more likely to detect any discrepancies. Tracing totals from the purchases journal to the ledger accounts would not detect a duplicate payment as the payment would have already been recorded in the ledger account. Sending written quarterly confirmations to all vendors would not be timely enough to detect the error.

A Client Recorded a Payable for a Large Purchase Twice