Payment Made Purchase System (2)

Question 1

What is risk (invoice)

Answer 1

That an invoice is paid twice/is for the wrong amount

Question 2

What is control objectives (invoice)

Answer 2

Ensure that suppliers are paid accurately

Question 3

What is controls (paid) (invoice)

Answer 3

Prior to being paid all invoices should be agreed to the GRN

Question 4

What is controls (calculations) (invoice)

Answer 4

Calculations such as unit price, sales tax, quantities and discounts agreed to appropriate records

Question 5

What is controls (stamped) (invoice)

Answer 5

Once paid the invoice should be stamped paid

Question 6

What is tests of control (invoice)

Answer 6

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