The monthly review and reconciliation of vendor statements and accounts payable records minimizes the risk of all of the following except
A)ommitted or fictitious returns
B)recording an invoice with an incorrect vendor
C)timing issues
D)invoices from a fictitious vendor

Question

Quizplus · Accepted Answer

The monthly review and reconciliation of vendor statements and accounts payable records can help detect if there are omissions or errors in recording vendor returns, incorrect recording of invoices, and issues with timing payments. However, it may not be effective in detecting invoices from a fictitious vendor, as these invoices would likely be completely fraudulent and not associated with a legitimate vendor statement. Preventing fictitious vendors would require establishing and implementing strong controls over vendor setup and approval processes.

The Monthly Review and Reconciliation of Vendor Statements and Accounts