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:

Pervasive

Referring to something that is widespread, deeply ingrained, and found throughout every part of a particular thing or place.

Lecture-based Teaching

is an educational approach where an instructor delivers information directly to learners, typically in a formal and structured setting.

Cardiac Surgery

A medical specialty involving surgical procedures on the heart or great vessels, performed by specialized surgeons.

Tactical

Relating to or constituting actions carefully planned to gain a specific military, business, or personal advantage.