Question

Which of the following items is not a control plan of the AP/CD process?

a. check for authorized prices, terms, freight, and discounts
b. independent validation of vendor invoices
c. independent authorization to make payment
d. reconcile bank account

Answer 1

The item that is not a control plan of the AP/CD process is d. reconcile bank account.

Step-by-step explanation:

The item that is not a control plan of the AP/CD process is d. reconcile bank account.

A control plan is a set of activities and procedures designed to ensure that financial transactions are authorized, accurate, and complete. Let's look at the other options to understand why they are control plans:

1. a. check for authorized prices, terms, freight, and discounts: This is a control plan because it involves verifying that the prices, terms, freight, and discounts on invoices are authorized and correct.
2. b. independent validation of vendor invoices: This is a control plan because it involves independently validating vendor invoices to ensure that they are accurate and reflect the correct goods or services received.
3. c. independent authorization to make payment: This is a control plan because it involves ensuring that payments are only made after independent authorization has been obtained.

Therefore, the correct answer is d. reconcile bank account, as it is not a control plan specific to the AP/CD process.