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) Comparison of the total of the authorized vouchers submitted for payment to the total in the cash disbursements journal for a specific period
B) Comparison of payment information with purchase order and receiving report information
C) Take advantage of all supplier discounts if favorable to the company.
D) Reconciliation of vendor statements with accounts payable subsidiary ledger