During the development of a purchasing system, an auditor reviewed the payment authorization program. Which of the following actions should the auditor recommend for a situation in which the quantity invoiced is greater than the quantity received?
During the development of a purchasing system, an auditor reviewed the payment authorization program. Which of the following actions should the auditor recommend for a situation in which the quantity invoiced is greater than the quantity received?
If the quantity invoiced is greater than the quantity received, the appropriate action is to return the invoice to the vendor for correction. This ensures the discrepancy is addressed directly with the vendor and prevents overpayment for goods that were not received. Issuing an exception report or authorizing full payment while maintaining records does not resolve the issue of the discrepancy. Adjusting the inventory account without resolving the discrepancy may also lead to incorrect financial records.
why A , the exception report will show the difference but will not fix the error . i guess IA should recommend preventative control not detective