An Auditor Learns That His Client Has Paid a Vendor

question 115

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

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Definitions:

Egocentrism

The cognitive inability to understand or assume any perspective other than one's own, commonly seen in early childhood development.

Piaget

Swiss psychologist known for his pioneering work in child development and his theory of cognitive development explaining how children acquire knowledge.

Theory of Mind

The cognitive ability to understand that others have beliefs, desires, and intentions that are different from one's own.

Piaget

Swiss psychologist known for his pioneering work in child development and his theory of cognitive development stages.