CFI 100 Certifying Officer and Accountable Official Course Practice Test

Improper payments occur when a disbursement is not properly authorized, not adequately supported by documentation, or is incorrect in amount. Preventing them relies on strong controls: every payment should have clear authorization, each disbursement must be supported by appropriate invoices or receipts, and there should be verification and reconciliation steps before payment is released. This combination catches and stops payments that haven’t been approved, lack evidence, or contain errors such as incorrect amounts, duplicates, or incorrect payees.

These other ideas don’t fit as well because having an authorized contract alone doesn’t guarantee proper documentation or verification, so a payment could still be improper. A payment that has full documentation but the amount is wrong is still improper because it’s erroneous, even if the paperwork exists. A small rounding difference may be allowed by policy; if it falls within permitted tolerance, it isn’t automatically improper.