Which documents should be used to verify contract terms and performance prior to payment?

• A. Contract terms, performance verification, and receiving reports.
• B. Vendor marketing material only.
• C. Bank statements.
• D. Employee time sheets.

Answer: (A)

Focusing on payables controls, you verify before payment by confirming that what was promised in the contract was actually delivered and meets the agreed terms. The documents that provide this evidence are the contract terms themselves, a clear record of performance verification showing that the supplier met the required deliverables or service levels, and receiving reports that confirm goods were received (correct quantity and condition). Together, these documents create an audit trail that payment is authorized and accurate.

Vendor marketing material cannot substitute for contract documentation because it is promotional and not an objective record of terms or performance. Bank statements show what happened financially after payment, not whether the contract terms were met or goods/services were delivered. Employee time sheets relate to internal labor costs and do not verify external contract performance or receipt of goods.