Unrecorded Payments May Result in Duplicate Payments to Vendors or Misstatement

Multiple Choice

Unrecorded payments may result in duplicate payments to vendors or misstatement of financial statements by overstating cash and accounts payable. Choose the best control activity to address this risk.

A) Report missing numbers in a sequence of prenumbered checks or ETFs for investigation and resolution.
B) Comparison of vendor ID in cash payments journal with vendor ID on supporting documentation and payments voucher
C) A three-way match against the purchase order, receiving report, and vendor's invoice
D) Take advantage of all supplier discounts if favorable to the company.