Which of the following is the most effective control activity to detect vouchers that were prepared for the payment of goods that were not received?

Question

Quizplus · Accepted Answer

Choice "B" is correct. The most effective control activity to detect vouchers that were prepared for the payment of goods that were not received is to match the purchase order, receiving report, and vendor's invoice for each voucher in the accounts payable department. Choices "A" and "C" are incorrect. Controls that start with goods received would not be effective at detecting a situation where vouchers are prepared for goods that were not received. Choice "D" is incorrect. Verifying vouchers for accuracy and approval in the internal audit department might detect vouchers that were prepared for the payment of goods that were not received. However, this is not the most effective control, since it would likely occur subsequent to the processing of the transaction.

Which of the Following Is the Most Effective Control Activity