Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

Financial Accounting

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

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Multiple Choice

Which of the following is the best control procedure to prevent the payment of an invoice twice?

Relying solely on vendor statements for payment verification

Allowing the same employee to both approve and pay invoices

Making payments based on verbal requests from department managers

Canceling or stamping 'PAID' on the invoice after payment

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Verified step by step guidance

Understand the problem: The goal is to identify the best control procedure to prevent the payment of an invoice twice. This involves analyzing the options provided and determining which procedure effectively addresses the issue.

Evaluate the first option: 'Relying solely on vendor statements for payment verification.' While vendor statements can provide information about outstanding invoices, relying solely on them does not ensure that invoices are not paid twice. This option lacks a direct mechanism to prevent duplicate payments.

Evaluate the second option: 'Allowing the same employee to both approve and pay invoices.' This option creates a conflict of interest and increases the risk of errors or fraud, including duplicate payments. It is not a strong control procedure.

Evaluate the third option: 'Making payments based on verbal requests from department managers.' Verbal requests lack documentation and are prone to errors or miscommunication, making this option ineffective in preventing duplicate payments.

Evaluate the fourth option: 'Canceling or stamping 'PAID' on the invoice after payment.' This procedure directly addresses the issue by marking invoices as paid, creating a clear record and preventing them from being processed again. This is the best control procedure to prevent duplicate payments.