Which of the following is the most effective test of control to detect vouchers prepared for the payment of goods that were not received?
A) Counting of goods upon receipt in the storeroom.
B) Matching of purchase order, receiving report and vendor invoice for each voucher in the accounts payable department.
C) Comparison of goods received with goods requisitioned in the receiving department.
D) Verification of vouchers for accuracy and approval in the internal audit department.

Question

Quizplus · Accepted Answer

The matching of purchase order, receiving report, and vendor invoice ensures that only goods that were actually received are paid for. This test ensures that there is proper documentation and authorization for the goods received and paid for. Counting of goods upon receipt is not an effective control test for this type of fraud. The comparison of goods received with goods requisitioned may not reveal if goods have not been received, and verification of vouchers for accuracy and approval may not detect if goods were not received.

Which of the Following Is the Most Effective Test of Control