ExpertHard1 markMultiple Choice
CPA · Question 58 · Area I: Information Systems
An auditor is testing a control that requires 'Three-Way Matching' for accounts payable. What three documents must match?
An auditor is testing a control that requires 'Three-Way Matching' for accounts payable. What three documents must match?
Answer options:
A.
Purchase Requisition, Purchase Order, and Check
B.
Purchase Order, Receiving Report, and Vendor Invoice
C.
Vendor Invoice, Check, and Bank Statement
D.
Sales Order, Shipping Doc, and Invoice
How to approach this question
3-Way Match = Order + Receipt + Bill.
Full Answer
B.Purchase Order, Receiving Report, and Vendor Invoice✓ Correct
Three-way matching verifies that the Purchase Order (what we wanted), Receiving Report (what we got), and Invoice (what we are billed for) all agree before payment is authorized.
Common mistakes
Confusing AP matching with Revenue matching.
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