Question

Several electronic invoices were misrouted to an organization. the invoices were received, input, and paid, but the organization had never purchased anything from the vendors that were paid. What control plan would prevent this.

Answer 1

To prevent the misrouting and payment of invoices, organizations should implement a three-way match system, supplier master data management protocols, and payment authorization procedures.

Step-by-step explanation:

The scenario described suggests a lack of proper internal controls within the organization's accounts payable process. To prevent erroneous payments, a control plan should include a three-way match system. This system cross-references the purchase order, the goods receipt note, and the invoice to ensure that only goods and services that have been ordered and received are paid for. Additionally, implementing a supplier master data management protocol would ensure that invoices are matched to approved suppliers only. A systematic implementation of payment authorization procedures involving multiple checkpoints can also help in preventing such errors.