A CPA Learns That His Client Has Paid a Vendor

question 60

Multiple Choice

A CPA 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 the

• A) attachment of the receiving report to the disbursement report.
• B) prenumbering of disbursement vouchers.
• C) use of a limit or reasonableness test.
• D) prenumbering of receiving reports.

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Definitions:

Declaration of Rights

Fundamental documents stating the inherent rights and liberties of individuals, often foundational to the laws and governance of a nation, such as the U.S. Declaration of Independence or the French Declaration of the Rights of Man and of the Citizen.

National Assembly

A legislative body, typically in a revolutionary or transitional period, that represents the sovereign people in the formation of new governance structures.

French Citizens

Individuals holding citizenship in France, entitling them to certain rights, responsibilities, and privileges defined by the French government.