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IIA Exam IIA-CIA-Part2 Topic 3 Question 95 Discussion

Actual exam question for IIA's IIA-CIA-Part2 exam
Question #: 95
Topic #: 3
[All IIA-CIA-Part2 Questions]

An internal auditor selects a sample of paid invoices and matches them to receiving reports. What is the most likely purpose for this procedure?

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Suggested Answer: B

Matching invoices to receiving reports ensures the organization only pays for goods it has actually received, addressing completeness and accuracy in financial transactions. This procedure aligns with the COSO Internal Control Framework's principles regarding transaction processing and control activities. It mitigates risks of paying for unordered or unreceived goods, a common source of errors and potential fraud in the accounts payable process. The IIA's CIA Part 2 syllabus emphasizes testing of key controls in financial systems, including those preventing overpayments (Section II: Audit Engagements).


by Lindsey at Jan 13, 2025, 08:29 PM

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Pansy
17 days ago
C? Really? Satisfying all liabilities? That's like saying I should audit my fridge to ensure I've eaten all the food in my house. Option B is the way to go.
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Lorrine
17 days ago
Haha, option D is a bit too specific. Auditors aren't just looking for goods ordered, they want to make sure the business is paying for what it actually received!
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Billi
6 days ago
A) To ensure all customer shipments are billed appropriately.
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Deangelo
26 days ago
I believe the purpose could also be to ensure all customer shipments are billed appropriately.
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Gianna
1 months ago
I agree, B is the correct answer. Auditing the invoice-receipt process is a great way to catch any discrepancies or potential fraud.
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Layla
8 days ago
C) To ensure all liabilities have been satisfied.
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Arlette
11 days ago
B) To ensure invoices are only paid for goods received.
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Minna
16 days ago
A) To ensure all customer shipments are billed appropriately.
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Rhea
1 months ago
I agree with Shawna. It's important to match invoices to receiving reports to avoid overpaying.
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Shawna
1 months ago
I think the purpose is to ensure invoices are only paid for goods received.
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Kaycee
1 months ago
Option B seems like the most logical choice. Matching invoices to receiving reports helps ensure we're only paying for goods that were actually received.
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Troy
24 days ago
It's definitely a key procedure to ensure accuracy in our financial transactions. Option B is the best choice for this purpose.
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Bernardo
26 days ago
Matching invoices to receiving reports is a good way to prevent paying for goods that were never received. It's a crucial internal control procedure.
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Karol
1 months ago
I agree, option B makes the most sense. It's important to verify that we're only paying for goods that were actually received.
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