Asked by Nicole Mowatt on May 31, 2024
Verified
Briefly describe a 3-way match and how it can be used to improve internal control.
3-way Match
An accounting control process matching the purchase order, delivery note/packing slip, and invoice before making a payment to the supplier.
Internal Control
Processes and procedures put in place by a company to ensure the integrity of financial and accounting information, enhance accountability, and prevent fraud.
- Comprehend the methodology and paperwork involved in overseeing purchase orders and stock within a corporate environment.
- Understand the order of operations for business processes regarding procurement and stock management in QuickBooks.
Verified Answer
JC
Jonathan CohenJun 01, 2024
Final Answer :
A principle of internal control is to use a 3-way match when ordering,receiving,and paying for inventory. Three-way match improves internal control by cross checking amounts across three different documents. Three-way match compares:
1. What was ordered?
2. What was received?
3. What was billed? Basically,we want to compare what we ordered with what we received,and what we were billed. These three amounts should agree so that we are not paying for more than what we ordered or received.
1. What was ordered?
2. What was received?
3. What was billed? Basically,we want to compare what we ordered with what we received,and what we were billed. These three amounts should agree so that we are not paying for more than what we ordered or received.
Learning Objectives
- Comprehend the methodology and paperwork involved in overseeing purchase orders and stock within a corporate environment.
- Understand the order of operations for business processes regarding procurement and stock management in QuickBooks.
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