During a preliminary survey, an auditor found that several accounts payable payment requisitions for major suppliers required adjustments for duplicate payment of prior invoices. This would indicate ....

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Accepted Answer

a need for additional testing to determine related controls and the current exposure to duplicate payments made to suppliers.

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insufficient controls in the receiving areas to ensure timely notice to accounts payable area that goods have been received and inspected.

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the existence of a sophisticated accounts payable system that correlate overpayments to open invoices and therefore requires no further audit concern.

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the possibility of unrecorded liabilities of the amount of the overpayments.

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During a preliminary survey, an auditor found that several accounts payable paym...

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