Payments Made to Unauthorized or Nonexistent Purchases May Result in Fraudulent

Multiple Choice

Payments made to unauthorized or nonexistent purchases may result in fraudulent misappropriation of cash. Choose the best control activity to address this risk.

A) Apply a three-way match against the purchase order, receiving report, and vendor's invoice.
B) Comparison of the total of the authorized vouchers submitted for payment to the total in the cash disbursements journal for a specific period
C) Take advantage of all supplier discounts if favorable to the company.
D) Reconciliation of vendor statements with accounts payable subsidiary ledger