Day: January 31, 2026

Alex Manufacturing Ltd has recently discovered that it has been paying invoices for goods that were returned as faulty before acceptance.

It is company policy to record goods only if they have been accepted.

Which ONE of the following controls would have prevented this from occurring?

Select ONE answer:

1. Matching of purchase invoices with orders
2. Matching of purchase invoices with goods received notes
3. Comparison of supplier statements with payables ledger accounts
4. Date stamping purchase invoices on receipt

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – As it is company policy to record goods only if accepted then a comparison of invoices with goods received records would identify if the goods had not been accepted – as there is no goods received record, the goods must have been faulty (or rejected for some other reason). This would then prevent the invoice from being processed.
3. Not correct
4. Not correct

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