An auditor is testing a control that requires 'Three-Way Matching' for accounts payable. What three documents must match?

Answer options:

Purchase Requisition, Purchase Order, and Check

Purchase Order, Receiving Report, and Vendor Invoice

Vendor Invoice, Check, and Bank Statement

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

Purchase Order, Receiving Report, and Vendor Invoice

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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