Discuss AICPA CPA-Auditing Exam Topic 2 Question 118

For effective internal accounting control, the accounts payable department should compare the information on each vendor's invoice with the:

AReceiving report and the purchase order.

BReceiving report and the voucher.

CVendor's packing slip and the purchase order.

DVendor's packing slip and the voucher.

Suggested Answer: A

Choice 'a' is correct. For effective internal accounting control, the accounts payable department should compare the information on each vendor's invoice with the receiving report and the purchase order to assure that goods were received and that the purchase was properly authorized.

Choices 'b', 'c', and 'd' are incorrect. Vendor packing slips and internally generated vouchers do not provide assurance that goods were received and that the purchase was properly authorized.

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28 comments · newest first

Cheryll 7 months ago

C is tempting, but it misses the voucher part. A is definitely stronger.

Ruthann 7 months ago

B could work too, but it’s not as comprehensive as A.

Leonida 7 months ago

I agree, A makes sense. We need to verify all three documents.

Vicky 8 months ago

I think A is the best choice. It ensures everything matches up.

Joana 8 months ago

C) seems a bit off, doesn’t it?

Julio 8 months ago

I think B) is also a valid option, though.

Avery 8 months ago

Wait, are we sure about that? What if the packing slip has errors?

Virgie 8 months ago

A) Receiving report and the purchase order is the way to go.

Flo 8 months ago

Haha, who even uses packing slips anymore? Just compare the invoice to the purchase order and call it a day!

Lynsey 9 months ago

D) Vendor's packing slip and the voucher? That's just asking for trouble! You need the receiving report to verify the actual goods.

Leontine 9 months ago

C) Vendor's packing slip and the purchase order is not the best choice, as the packing slip may not match the actual items received.

Sharan 9 months ago

B) Receiving report and the voucher is a good option too, as the voucher contains the approved purchase information.

Lashaunda 9 months ago

I’m leaning towards option A because it seems like the most logical combination for internal controls, but I could be wrong.

Meghan 9 months ago

I feel like the voucher is important too, but I can't remember if it's the right choice here.

Izetta 9 months ago

I think we practiced a similar question, and I recall that the receiving report and purchase order are key for matching invoices.

Nancey 10 months ago

A) Receiving report and the purchase order is the correct answer. This ensures that the invoice matches the goods received and the order placed.

Merrilee 10 months ago

Totally agree, that’s standard practice!

Stephen 11 months ago

I remember studying that the accounts payable department needs to verify invoices, but I'm not entirely sure which documents to compare them with.

Leah 11 months ago

I'm leaning towards C - the vendor's packing slip and the purchase order. That seems like it would provide a good cross-check of the order details.

Shannon 11 months ago

I'm pretty confident that the answer is A. Comparing the invoice to the receiving report and purchase order is a standard internal control procedure to ensure accuracy.

Blythe 11 months ago

Okay, let me think this through. The accounts payable department needs to make sure the invoice matches the other documentation, so I'm going to go with B - the receiving report and the voucher.

Dierdre 11 months ago

Hmm, I'm a bit confused on this one. I'm not sure if I should be looking at the packing slip or the voucher. The question is a bit tricky.

Dacia 12 months ago

I think the answer is A - the receiving report and the purchase order. That seems like the most comprehensive way to verify the invoice details.

Felton 6 months ago

↳ replying to Dacia

Yes, it ensures everything matches up.

Anna 6 months ago

↳ replying to Dacia

A is the best choice for accuracy.

Gearldine 10 months ago

↳ replying to Dacia

Definitely! It covers all bases.

Billye 10 months ago

↳ replying to Dacia

I agree, A makes the most sense.

Venita 10 months ago

↳ replying to Dacia

A is the way to go for internal controls!

AICPA CPA-Auditing Exam - Topic 2 Question 118 Discussion