Which factors help detect improper payments during verification?

• A. Relying on vendor assurances without supporting documents.
• B. Paying first and verifying later.
• C. Matching invoices to contract terms and delivered goods/services, and ensuring prices are correct.
• D. Approving all payments if the vendor is a long-standing supplier.

Answer: (C)

Verification is strongest when you perform a thorough match between what the vendor billed and what was agreed and actually received. The key is the three-way check: compare the invoice to the purchase order for the promised items, quantities, and terms; confirm the items and quantities were received (receiving report); and verify that the unit prices, discounts, and overall charges align with the contract terms. When all three align, you have a strong basis to approve the payment; if any part mismatches—such as an incorrect quantity, a different item, or a price outside the contract—payments can be stopped or adjusted before they go out. This approach helps catch overcharges, billing for goods or services not delivered, duplicate invoices, or unauthorized price changes, reducing the chance of improper payments.

Relying on vendor assurances without supporting documents lacks independent verification and can hide errors or fraud. Paying first and verifying later eliminates the crucial check that prevents improper payments. Approving all payments for a long-standing supplier may feel efficient, but it ignores changes in price or scope and misses opportunities to detect improper charges.