Question

Match the best control plan to solve the control problem

(1) An invoice was paid for goods that were never ordered.
(2) An invoice was paid for goods that were never received.
(3) Due to a clerical error a check was made out for $1,234 but the invoice was really for $2,134.
(4) Due to a variety of adjusting journal entries, the AP subledgers do not match the AP control account.
(5) The bank mistakenly charged a check drawn on account 1222 to your account 2222.
(A) Match invoice to PO
(B) Match invoice to receiving report
(C) Reconcile the subledgers to the control account monthly
(D) Reconcile the bank account monthly
(E) One for one checking of the check to the voucher package

Answer 1

The best control plan to solve the control problems described includes matching invoices to purchase orders/receiving reports, one for one checking of checks to the voucher package, and reconciling subledgers and bank accounts monthly.

Step-by-step explanation:

The best control plan to solve the control problems described is as follows:

1. (1) An invoice was paid for goods that were never ordered - Match invoice to PO
2. (2) An invoice was paid for goods that were never received - Match invoice to receiving report
3. (3) Due to a clerical error a check was made out for $1,234, but the invoice was really for $2,134 - One for one checking of the check to the voucher package
4. (4) Due to a variety of adjusting journal entries, the AP subledgers do not match the AP control account - Reconcile the subledgers to the control account monthly
5. (5) The bank mistakenly charged a check drawn on account 1222 to your account 2222 - Reconcile the bank account monthly