Final answer:
To detect that a vendor overcharged for goods delivered, an internal control procedure includes reconciling purchase orders with invoices and receiving reports, implementing audit trails to document steps of the purchasing process, and conducting regular reviews and analysis of vendor invoices.
Step-by-step explanation:
An internal control procedure that would detect that a vendor overcharged for goods delivered is reconciling the purchase orders with the vendor's invoice and the receiving reports. This involves comparing the quantities, prices, and descriptions of the goods on the purchase order with those on the vendor's invoice and the receiving reports. Any discrepancies would indicate a potential overcharge.
Audit trails can also be implemented, which involve documenting each step of the purchasing process. This includes keeping records of purchase orders, invoices, receiving reports, and payments. By having a clear record of each transaction, it becomes easier to identify any discrepancies and detect instances of overcharging.
Lastly, regular reviews and analysis of vendor invoices can help identify any patterns or inconsistencies that may suggest overcharging. By analyzing historical data and comparing it to current invoices, any unusual pricing or billing patterns can be identified and further investigated.