Final answer:
To prevent payment for goods not delivered, a three-way match of the purchase order, receiving report, and vendor's invoice is vital. Vigilant communication, as seen in Noel's actions, reinforces the importance of detailed reviews in internal control procedures.
Step-by-step explanation:
Preventing Payment for Undelivered Goods through Internal Controls
One effective internal control procedure to prevent payment of an invoice for goods that were never delivered is to implement a three-way match. This process involves verifying that the purchase order, the receiving report, and the vendor's invoice all align before a payment is authorized. In practice, following Noel's discovery of a possible overpayment, the accounts payable department should match the details on the invoice with the company's purchase order and a proof of delivery document. If a receiving report or delivery confirmation is not available, or if the quantities or prices do not align, payment should be withheld until the discrepancy is resolved. Noel's proactive communication through various channels, including Slack and email, exemplifies good practice in maintaining vigilance over potential payment issues. This incident underscores the importance of a highly attentive and thorough review process within the payment cycle to safeguard company assets.
To answer the separate question about ways a seller can reassure a buyer who is faced with imperfect information, the seller might provide comprehensive product information, customer testimonials, free samples or trials, warranties, or money-back guarantees.