Why does an internal control system use a 3-way match?
A)Comparing what was ordered with what was received,and what was billed ensures a company does not pay more than what was ordered or received.
B)Comparing what was received with what was budgeted,and ensuring a company does not overspend on inventory items.
C)Comparing what a company physically has with what was ordered,and ensuring inventory is maintained at quality level.
D)Comparing what was ordered with what was received,and what was physically sold or remains on hand.

Question

Quizplus · Accepted Answer

A 3-way match compares what was ordered, received, and billed to ensure that a company does not pay more than what was ordered or received. This helps to prevent overpayment and ensures accuracy in the company's financial reporting. The other options do not accurately describe the purpose of a 3-way match.

Why Does an Internal Control System Use a 3-Way Match