Payments are not made twice for the same liability

Question 1

What is risk

Answer 1

Invoice is paid twice

Question 2

What is control objective

Answer 2

Prevent invoice paid twice for the same liability

Question 3

What is controls (stamped)

Answer 3

Once paid the invoice is stamped paid

Question 4

What is controls (sequentially)

Answer 4

Purchase invoices should be sequentially numbered and the invoice recorded as “paid” on the system so that computer will not allow the same invoice to be paid twice

Question 5

What is test of controls (sample)

Answer 5

Inspect a sample of invoices for evidence that calculations have been reperformed and the invoice stamped as “paid”

Question 6

What is test of controls (process)

Answer 6

Attempt to pricess a payment for an invoice which has previously been paid to determine whether system will block the payment