Which of the following is a control procedure that is usually applied to accounts payable?
A)Periodic confirmation of accounts payable.
B)Mailing statements to vendors detailing their account.
C)Periodic aging of accounts payable.
D)Matching invoices with receiving documents before disbursements are authorized.

Question

Quizplus · Accepted Answer

Matching invoices with receiving documents before disbursements are authorized is a key control procedure for accounts payable to ensure that payments are being made for legitimate transactions and that the goods or services have been received by the organization. Periodic confirmation of accounts payable and aging of accounts payable may also be used as control procedures, but they are not as effective as the matching of invoices with receiving documents. Mailing statements to vendors detailing their account is not a control procedure, but rather a communication tool.

Which of the Following Is a Control Procedure That Is