Prior to recording purchases transactions, supplier's invoices are checked and approved in the accounts department. Controls over this function include all of the following except
A) marking all supporting documentation as "paid".
B) approving the supplier's invoice for payment by having an authorized person sign the invoice.
C) agreeing the details of the supplier's invoice with the related receiving report and purchase order.
D) determining the mathematical accuracy of the supplier's invoice.

Question

Quizplus · Accepted Answer

Marking all supporting documentation as "paid" is not a control over the function of checking and approving supplier's invoices. This may be done after the purchase transactions have been recorded to indicate that they have been paid. The other options listed (B, C, and D) are all controls that ensure the accuracy and validity of supplier's invoices before they are recorded as purchases.

Prior to Recording Purchases Transactions, Supplier's Invoices Are Checked and Approved