An Auditor Learns That His Client Has Paid a Vendor

question 15

Multiple Choice

An auditor learns that his client has paid a vendor twice for the same shipment, once based upon the original invoice and once based upon the monthly statement. A control procedure that should have prevented this duplicate payment is:

• A) prenumbering of payment vouchers.
• B) use of a limit or reasonableness test.
• C) prenumbering of receiving reports.
• D) supporting documentation is examined before signing of cheques by an authorized person.

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Definitions:

Collectivist Cultures

Cultures that prioritize the group over the individual, emphasizing interdependence, family, and community values.

Inequity

A condition of unfairness or imbalanced treatment, where rewards do not match the efforts or contributions of individuals or groups.

Expectancy Theory

A motivational theory suggesting that individuals are likely to engage in behaviors based on the expected outcome and the attractiveness of that outcome.

Cross-cultural

Pertaining to or comparing different cultures or societies, especially to understand cultural differences or similarities.