1. Kaliganj Pharma Ltd keeps an approved supplier list. Its stores manager, Ms Rina, raises requisitions and orders for packaging materials and also signs the goods received records at the warehouse. Over 14 months she placed orders with genuine approved suppliers who colluded with her, signed records for deliveries that never arrived, and passed the invoices to accounts, which matched them to the order and the goods received record and paid CU 1.1 million. Which single control change would have been most likely to prevent this fraud?

A) Locking blank order forms in a safe, because only authorised staff could then raise orders with the approved suppliers
B) Monthly review of outstanding orders by the purchasing director, because undelivered orders would then be chased promptly
C) Pre-numbered order forms with a sequence check, because missing or duplicated orders would then be detected and investigated
D) Goods receipt by stores staff independent of the orderer, because she could not confirm deliveries that never took place

Correct: D difficult ISA 315 (Revised 2019)

The fraud depended on one person controlling both ordering and the evidence that goods arrived. The suppliers were already approved and the manager was entitled to raise orders, so order-form numbering, safeguarding of blank forms and a supplier list would not have stopped her. A review of outstanding orders also fails because the false goods received records closed the orders. Segregating receipt of goods from ordering removes her ability to certify deliveries, which is the control that matches the objective that goods are accepted only if genuinely received.

2. Meghna Foods Ltd ordered 4,000 kg of sugar at CU 62 per kg. The goods received record shows 3,650 kg delivered, and the supplier has confirmed the balance will not be sent. The supplier's invoice bills 4,000 kg at CU 62 per kg plus a delivery charge of CU 3,500 that was not on the purchase order, giving a total of CU 251,500. What amount should accounts approve for payment on a three-way match, and what should happen to the difference?

A) CU 229,800, being the 3,650 kg received at the ordered price plus the CU 3,500 delivery charge billed by the supplier
B) CU 248,000, being the 4,000 kg ordered at the agreed price; the delivery charge is queried separately with the supplier
C) CU 251,500, being the invoice total, since the goods received record confirms that most of the order was delivered
D) CU 226,300, being the 3,650 kg received at the ordered price; query the CU 25,200 balance and request a credit note

Correct: D difficult ISA 330

A liability arises only for goods actually received at the price authorised on the order, so the match is to the lower of order and goods received record. 3,650 kg at CU 62 is CU 226,300. The difference of CU 25,200 comprises CU 21,700 for 350 kg not delivered and the CU 3,500 delivery charge that no one authorised, and both must be queried and a credit note obtained. Paying the order quantity or the invoice total ignores the goods received record, and paying the delivery charge accepts an unauthorised cost.

3. At 30 June, Jamuna Chemicals' statement shows CU 482,500 owed by Padma Textiles Ltd, while Padma's payables ledger shows CU 431,800. Differences: a cheque for CU 60,000 posted on 28 June is credited by the supplier on 3 July; an invoice for CU 18,700 dated 29 June is on the statement, but the goods arrived on 2 July under delivery-on-arrival terms; goods of CU 22,000 were handed to the carrier on 29 June under terms passing title on dispatch, and are in the ledger but not yet on the statement; and a CU 6,000 credit note dated 26 June for returned goods is on the statement but not in Padma's ledger. What payables balance should be reported, and what is required?

A) CU 431,800; the ledger agrees to the underlying records, and every difference to the statement is a timing difference
B) CU 482,500; the supplier's statement is external evidence, so the ledger should be adjusted to agree to it in full
C) CU 425,800; only the CU 6,000 credit note needs recording, since the other reconciling items are timing differences
D) CU 450,500; the CU 18,700 invoice on the statement should be accrued because the supplier has already recorded it

Correct: C complex ISA 505 and ISA 500

Start from the statement of CU 482,500 and remove the CU 60,000 cheque in transit and the CU 18,700 invoice for goods received after the year end, then add the CU 22,000 goods Padma already controls: this gives CU 425,800. The same figure arises from the ledger of CU 431,800 less the unrecorded CU 6,000 credit note, which is the only item requiring an entry. Accruing the CU 18,700 invoice would breach cut-off, and the statement itself is not authoritative where it contains timing differences.

4. Karnaphuli Steel Ltd has a 31 March year end and trade payables of CU 18.4 million, processed from about 2,400 invoices a month. In May, the audit team assesses completeness of trade payables as a significant risk because the accounts department has been understaffed. Which procedure is most likely to provide evidence about the completeness assertion?

A) Select balances on the payables ledger at the year end and vouch each to the supplier invoice and goods received record
B) Send confirmation requests to suppliers with the largest ledger balances and follow up all non-replies with alternative evidence
C) Agree the payables ledger total to the control account and re-perform the addition of the year-end list of balances
D) Select payments and invoices received after the year end and examine goods received records to establish the period of delivery

Correct: D difficult ISA 500

Completeness is tested by starting from sources outside the recorded payables population, so that liabilities missing from the ledger can be found. Subsequent payments, invoices received after the year end and unmatched goods received records are examined to see whether the goods or services were received before 31 March. Vouching, confirming or adding recorded balances tests existence, rights and accuracy, which could not reveal an invoice that was never recorded.

5. At 31 December, Neelkanth Electronics Ltd has these items with no supplier invoice recorded: goods received record 4101, received 27 December, CU 42,000; record 4106, received 30 December, CU 36,500; record 4109, received 29 December, CU 15,000, returned as defective on 31 December with a credit agreed; goods of CU 64,000 shipped 29 December ex-works (title passes at the supplier's premises), arriving 5 January; goods of CU 27,500 shipped 30 December on terms passing title on delivery, arriving 4 January; and record 4118, received 2 January, CU 51,000. What accrual for goods received not invoiced is required?

A) CU 93,500, being all three goods received records dated before 31 December, ignoring goods in transit under any terms
B) CU 170,000, being everything shipped by suppliers by 31 December, whatever the terms on which title passes to Neelkanth
C) CU 142,500, being records 4101 and 4106 plus the ex-works shipment, which Neelkanth already controlled at the year end
D) CU 78,500, being only the goods received records dated on or before 31 December that were not returned to the supplier

Correct: C complex ISA 500

A liability exists for goods the entity controls at the year end. Records 4101 (CU 42,000) and 4106 (CU 36,500) qualify, and so does the CU 64,000 ex-works shipment because title had already passed in transit: total CU 142,500. Record 4109 was returned with a credit, so no liability remains. The CU 27,500 shipment passes title only on delivery and record 4118 was received in January, so both belong to the next period.

6. Surma Packaging Ltd had credit purchases of CU 14.0 million and year-end trade payables of CU 2.1 million last year. This year, credit purchases are CU 15.4 million and recorded trade payables are CU 1.9 million. Supplier terms have not changed, and the auditor has set CU 150,000 as the difference that can be accepted without further investigation. Which conclusion is correct?

A) Expected payables are CU 2.31 million, so the CU 410,000 shortfall exceeds the threshold and points to possible understatement
B) Expected payables are CU 2.10 million, so the CU 200,000 shortfall exceeds the threshold and points to possible understatement
C) Expected payables are CU 2.31 million, so the CU 410,000 shortfall exceeds the threshold, so the ledger balances should be vouched
D) Expected payables are CU 2.31 million, but management's explanation of faster settlement is accepted without any corroboration

Correct: A difficult ISA 520

With terms unchanged, payables should move in line with purchases: CU 2.1 million x 15.4 / 14.0 = CU 2.31 million. Recorded payables are CU 410,000 lower, well above the CU 150,000 threshold, and a balance lower than expected is a completeness warning that should lead to a search for unrecorded liabilities and cut-off testing. Ignoring the 10% growth gives the wrong gap, vouching recorded balances would not detect omitted invoices, and management's explanation must be corroborated before it is accepted.

7. Rajshahi Agro Ltd's payment policy allows the finance manager to approve a bank transfer up to CU 250,000 on his own, while larger transfers need a second approver, the CFO. Data analytics on the bank payments file show that Sonali Traders received three transfers of CU 230,000 on the same day, each approved only by the finance manager. All three relate to one supplier invoice of CU 690,000 that is supported by a goods received record. Which conclusion is most appropriate for the auditor?

A) The limit was bypassed by splitting one liability, so a deviation exists and the payments must be investigated for error or fraud
B) No deviation arises, because each transfer was within the single-approver limit and the invoice is supported by a goods received record
C) The auditor should conclude fraud has taken place and report the finance manager to the regulator at once, before further enquiries
D) Only a design deficiency exists, so the auditor reports it to management and keeps the planned reliance on the payment controls

Correct: A difficult ISA 240

Authorisation limits are intended to apply to the liability being settled, not to the individual transfers. Three same-day transfers that add up to CU 690,000 and bypass the CFO are a deviation from the intended control and a fraud risk indicator, so the auditor should reconsider reliance, extend testing and investigate the payments. Valid supporting documents do not remove the deviation, and it is premature to conclude fraud or report externally before enquiring into the facts.

8. The auditor of Barishal Tiles Ltd plans to rely on a control under which accounts pays an invoice only after it has been matched to the order and goods received record and initialled by the payables supervisor. A sample of 80 payments was tested from a population of 6,000, with a tolerable deviation rate of 6% and an expected rate of 2%. Eight payments lacked the matching initials. Which conclusion is appropriate?

A) The 10% rate is above the 2% expected rate but below 12%, twice the tolerable rate, so partial reliance remains supportable
B) The deviations are 8 of 6,000 payments, a rate of 0.13%, below the 6% tolerable rate, so the planned reliance is supported
C) The 10% rate exceeds the 6% tolerable rate, so reliance is unsupported and substantive work on payables must increase
D) The 10% rate is a compliance failure only, so the substantive procedures planned on payables and purchases remain unchanged

Correct: C difficult ISA 330 and ISA 530

The sample deviation rate is 8 / 80 = 10%, which is higher than the 6% the auditor could tolerate, so the test does not support the planned level of control risk. The auditor must revise the risk assessment and increase substantive procedures on purchases and payables (ISA 330). Dividing by the population is wrong, because the rate is measured on the sample, and there is no rule allowing partial reliance when the rate is under double the tolerable rate.

9. In testing operating expenses of Teesta Garments Ltd, the auditor examined all six invoices over CU 150,000 (total CU 1.2 million), finding one overstated by CU 12,000. From the remaining population of CU 4.65 million, a sample of 40 invoices totalling CU 310,000 was tested and misstatements of CU 6,200 were found. Tolerable misstatement for the area is CU 100,000. What is the correct evaluation?

A) Total error is CU 18,200, being the sample error plus the known error, well below tolerable, so no projection is needed
B) Projected error is CU 93,000; with the CU 12,000 known error the total is CU 105,000, above tolerable, so adjust or extend
C) Projected error is CU 129,000, being the 2% error rate on all CU 5.85 million of purchases plus the known error
D) Projected error is CU 93,000, below the CU 100,000 tolerable misstatement, so the population is accepted as fairly stated

Correct: B complex ISA 530 and ISA 450

The sample error rate is 6,200 / 310,000 = 2%, projected onto the untested population of CU 4.65 million to give CU 93,000. The CU 12,000 in the individually examined items is a known misstatement and is added, not projected, giving CU 105,000, which exceeds tolerable misstatement of CU 100,000. The auditor should therefore request correction or extend work. Leaving out the known error understates the total, and applying the rate to the items already examined individually double counts.

10. At Bhola Cement Ltd, a clerk can add suppliers and also prepares the weekly payment run. Three suppliers set up this quarter have only PO box addresses and consecutively numbered invoices of CU 95,000 to CU 99,000, just below the CU 100,000 limit above which a second approval is needed. Each invoice agrees to an order and a goods received record raised by the same clerk. Which audit procedure is most likely to detect fictitious suppliers?

A) Agree each payment to the invoice, order and goods received record, since the documents all agree and are properly referenced
B) Send confirmation requests to the PO box addresses on the master file and treat any returned replies as evidence of existence
C) Obtain the supplier statements provided by the clerk and agree the balances to the payables ledger for the new suppliers
D) Compare supplier bank accounts and addresses with employee records, and independently verify that the suppliers truly exist

Correct: D difficult ISA 240

The documents were created by the clerk who controls the whole process, so agreeing them to each other proves nothing, and confirmations or statements routed through addresses on the master file may be controlled by the fraudster. Matching master file details such as bank accounts and addresses against employees, and verifying existence through independent sources such as a trade licence register, directly addresses the fictitious supplier risk. The consecutive numbers and amounts just under the approval limit are indicators that raise the fraud risk.

11. Padma Packaging Ltd bought goods costing CU 4.8 million this year from Bhai Bhai Plastics Ltd, a company 80% owned by its managing director. The auditor finds that the prices are about 20% above those of comparable independent suppliers, and the relationship is not disclosed in the financial statements. What is the premium over arm's-length prices, and what should the auditor conclude?

A) The premium is CU 800,000, but the invoices are accurately recorded at cost, so the auditor need take no action on disclosure
B) The premium is CU 800,000; the undisclosed related party transaction must be evaluated, communicated to governance and considered as a fraud risk
C) The premium is CU 960,000; the undisclosed related party transaction must be evaluated, communicated to governance and considered as a fraud risk
D) The premium is CU 800,000, but disclosure is needed only where prices differ from arm's-length terms, so the pricing is the only concern

Correct: B complex ISA 550

The price paid is 120% of the arm's-length price, so the arm's-length cost is CU 4.8 million / 1.2 = CU 4.0 million and the premium is CU 800,000, not 20% of CU 4.8 million. Under IAS 24, related party transactions must be disclosed whether or not on arm's-length terms, and ISA 550 requires the auditor to evaluate the rationale, check the completeness of disclosure, communicate the matter to those charged with governance and consider the fraud risk implications.

12. At the year-end count of Madhumati Foods Ltd on 30 June, the auditor sees a pallet of raw materials costing CU 85,000 delivered at 4pm and included in the count. Because the goods received record and the supplier invoice were processed on 2 July, the purchase was excluded from June purchases. Closing inventory is taken from the count and cost of sales is computed from purchases. What is the effect on the year-end financial statements if no correction is made?

A) Profit is overstated and payables understated by CU 85,000, while inventory is correct because the goods were owned at the year end
B) Profit and payables are both understated by CU 85,000, because the goods were received and counted before the invoice was posted
C) Inventory and profit are both overstated by CU 85,000, because the goods were included in the count before being recorded as purchased
D) Net assets are unaffected because the CU 85,000 added to inventory is offset by the unrecorded payable, so only disclosure is affected

Correct: A difficult ISA 501 and ISA 500

The goods were physically on hand and owned at 30 June, so inventory of CU 85,000 is properly included. The purchase was omitted from cost of sales while the closing inventory was included, so cost of sales is understated and profit overstated by CU 85,000, and the unrecorded payable understates liabilities by the same amount. Net assets are therefore overstated. Recording the last goods received record number at the count lets the auditor detect this cut-off error.

13. Dhaka Industrial Supplies Ltd received an email from a regular supplier giving new bank account details effective immediately. A payables clerk updated the master file the same day and a payment of CU 720,000 was later released to the new account. The email was spoofed. Which control would have been most effective in preventing the loss?

A) Monthly reconciliation of supplier statements to the payables ledger, since the supplier would soon report any unpaid balance
B) Call-back to the supplier using contact details already on file, with a second person approving the master file change
C) Two authorisers approving each payment run before release, since the approvers would spot the changed bank account details
D) Three-way matching of every invoice to the order and goods received record, since the matching would show the redirection

Correct: B difficult ISA 315 (Revised 2019)

The risk arises in the master file, so the preventive control must apply before a change is accepted: verifying the request through independently held contact details and having someone else approve the amendment. Approvers of a payment run usually see supplier names and totals, not account numbers. Statement reconciliations are detective and late, and matching invoices to orders and receipts proves the liability is genuine, not that the account being paid belongs to the supplier.

14. At Barisal Paints Ltd, the payables manager can override three-way matching for invoices marked urgent. Overrides are not logged or reviewed, and covered CU 3.6 million of the CU 24 million annual purchases. The audit team has concluded that the deficiency is significant, as it could allow payment for goods not received. What communication does ISA 265 require?

A) Reporting the deficiency as a key audit matter in the auditor's report, because it affects the reliability of the payables balance
B) Oral communication to the audit committee at year end only, since the override is an operational weakness and need not be put in writing
C) Written communication to those charged with governance on a timely basis, describing the deficiency and its effects on the business
D) Communication to management alone, since operational control deficiencies reach governance only when a misstatement has been found

Correct: C difficult ISA 265

ISA 265 requires significant deficiencies in internal control to be communicated in writing to those charged with governance on a timely basis, and other deficiencies to management. The communication should describe the deficiency and explain its potential effects. A deficiency does not have to produce a misstatement to be reportable, and oral reporting alone is not enough for a significant deficiency. Key audit matters are about matters of most significance in the audit, not a vehicle for reporting internal control deficiencies.

15. Bhairab Builders Ltd's payables system is programmed with each supplier's credit terms and schedules payments accordingly. In July, the auditor processed five dummy invoices for existing suppliers through a test copy of the module and found that payments were scheduled correctly on each due date. The year end is 31 December. Which conclusion is most appropriate?

A) More work is needed, because the test shows the program worked in July only and later changes must be shown as controlled
B) No more work is needed, because dummy invoices are a substantive procedure that gives direct evidence on year-end payables
C) No more work is needed, because automated controls operate consistently, so one successful run proves they worked all year
D) More work is needed, because test data results are inadmissible unless every supplier in the master file is included

Correct: A difficult ISA 330

Test data is a test of controls over the program logic. Automated controls are consistent only if the program has not changed, so the auditor must also obtain evidence on program change controls and access over the period, or retest near the year end. It is not a substantive procedure on the payables balance, and there is no requirement to include every supplier, since the test covers the logic and a range of conditions.

16. Dhaka Hardware Ltd lets its department heads place purchase orders with any supplier they choose. The auditor is asked to identify the two main risks that arise at the ordering stage of the purchases system. Which pair is correct?

A) Payments being made to the wrong supplier, and invoices being paid too early in the credit period
B) Purchases being made for personal use, and goods not being obtained on the most advantageous terms
C) Goods being accepted without an order, and credit notes not being recorded in the ledger
D) Cut-off being applied incorrectly, and payments being recorded in the wrong accounting period

Correct: B difficult ISA 315 (Revised 2019)

At the ordering stage the two risks are that unauthorised purchases may be made for personal use and that goods and services may not be obtained on the most advantageous terms. Wrong-supplier payments and early payment arise at the payment stage, accepting goods without an order and unrecorded credit notes arise at goods inward and recording of invoices, and cut-off and period errors arise at recording and payment.

17. The stores manager of Lyton Ltd was in charge of ordering. She raised false orders to non-existent suppliers, raised goods received records for deliveries that never arrived and sent the invoices to accounts, which paid them. Which two controls would have prevented this fraud?

A) Pre-numbered order forms, and blank order forms kept locked in a safe when not in use
B) Pre-numbered order forms, and an approved list of suppliers from which orders may be placed
C) Blank order forms kept locked in a safe, and a check of goods inward by the orderer herself
D) An approved supplier list, and a check of goods inward by someone other than the orderer

Correct: D complex ISA 240

An approved list of suppliers would stop orders being placed with non-existent suppliers, and a check of goods inward by a person other than the orderer would stop her from recording receipts that never happened. Because the stores manager was entitled to place orders, pre-numbered order forms and safekeeping of blank order forms would have made no difference in this case.

18. Weezy plc receives a large number of deliveries every day. Which one of the following internal controls is most likely to prevent the company from paying for goods that it has not received?

A) Matching purchase invoices to goods received records before they are passed for payment
B) Keeping the stores locked so that only the storekeeper can enter once a delivery is made
C) Safeguarding of blank order forms in a locked cabinet in the purchasing office at all times
D) Checking the numerical sequence of the order forms that have been issued during the month

Correct: A difficult ISA 315 (Revised 2019)

Matching purchase invoices to goods received records ensures that an invoice is only passed for payment where the goods were actually received. Locked stores protect inventory from theft, safeguarding blank order forms prevents unauthorised ordering, and a sequence check on order forms addresses completeness of orders, so none of these stops an invoice for undelivered goods from being paid.

19. In testing the controls over goods inward at Rangpur Steel Ltd, the auditor checks the numerical sequence of goods received records and enquires into any missing numbers. Why is this check performed?

A) A complete sequence proves that every item received was ordered by an authorised person at the company
B) It shows that the goods received were of satisfactory quality when they arrived on site
C) Missing numbers may mean goods came in but were never matched to an invoice, omitting the liability
D) It confirms that the prices charged on supplier invoices agree to the approved supplier quotations

Correct: C difficult ISA 330

The sequence of goods received records provides a control that purchases are completely recorded. Missing documents should be explained, or cancelled copies should be available, because otherwise the implication could be that goods have been received but not matched with an invoice and the liability for that invoice is being omitted. Authorisation, quality and price are tested by other procedures.

20. Rhonda, an accounts clerk at Sylhet Packaging Ltd, posts supplier invoices to the payables account. Which one of the following would be most likely to help prevent suppliers from being overpaid?

A) Examining the nominal ledger account for unusual entries once a year after the year end
B) Authorisation of payments by an appropriate person before the payment is released
C) Bank reconciliations prepared at the end of each month by the accounts department
D) Reviewing the classification of expenditure by type in the purchases ledger each quarter

Correct: B difficult ISA 315 (Revised 2019)

Authorisation of payments, with the authoriser checking the supporting invoice and goods received record, is a preventive control that stops a supplier being paid more than is due. Reviewing the nominal ledger for unusual entries and preparing bank reconciliations may detect an overpayment after the event, and reviewing the classification of expenditure has no effect on the amount paid.

21. Which combination of control activities is most likely to reduce the risk of Bogura Cement Ltd making payments twice for the same liability?

A) Stamping 'paid' on invoices that have been paid, and authorisation of payments
B) Tracing transfers to other bank accounts, and checking supplier statements before payment
C) Tracing transfers to other bank accounts, and review of the classification of expenditure
D) Checking supplier statements before payment, and review of the classification of expenditure

Correct: A difficult ISA 315 (Revised 2019)

Stamping or electronically marking an invoice as paid stops it from being presented for payment again, and authorisation of payments allows the authoriser to see whether the liability has already been settled. Checking supplier statements helps but is not foolproof because of timing differences between the statement date and the payments made, tracing transfers is a test performed afterwards, and reviewing the classification of expenditure does not prevent duplicate payments.

22. The auditor of Sunny plc finds that the company has no procedure to track the due dates of purchase invoices. Which consequence is most likely to arise from this deficiency?

A) Goods that were never received may be paid for by the accounts department
B) Inferior goods may be purchased from suppliers without anyone noticing the fall in quality
C) Payments may be made to fictitious suppliers set up on the payables ledger by staff
D) Prompt payment discounts may be missed and the full credit period may not be obtained

Correct: D difficult ISA 315 (Revised 2019)

If no one tracks invoice due dates, invoices may be paid too early, so the company loses the benefit of the full credit period, or too late to qualify for prompt payment discounts. Paying for goods not received is a failure of matching, inferior goods are a failure of inspection at goods inward, and fictitious suppliers are a failure of controls over supplier set-up and ordering.

23. Barishal Mills Ltd has no system to track invoice due dates. A supplier invoice for CU 240,000 plus 15% VAT offered a 2.5% prompt payment discount on the net amount before VAT if paid within 10 days. The invoice was paid on day 40. What discount was lost?

A) CU 3,600
B) CU 6,900
C) CU 6,000
D) CU 36,000

Correct: C difficult ISA 315 (Revised 2019)

The discount is 2.5% of the net invoice amount before VAT, so 2.5% x CU 240,000 = CU 6,000. CU 6,900 wrongly applies the discount to the VAT-inclusive total of CU 276,000, CU 36,000 is the VAT itself, and CU 3,600 uses 1.5% instead of 2.5%. The loss illustrates why the monitoring of supplier terms is a purchases control.

24. Manufacturing Company Ltd works on a just-in-time basis. Suppliers deliver within 12 hours of an automatic order and invoice electronically on despatch, and materials go into production within hours of arrival. Which control over goods inward matters most here?

A) A monthly comparison of supplier statements with payables as the only check on goods received
B) Pre-numbered goods received records showing quality and quantity checks, copied to accounts for invoice matching
C) An annual physical count of the raw materials that are held in the warehouse stores at the year end
D) A quarterly review of the classification of purchases expenditure by the financial controller

Correct: B difficult ISA 315 (Revised 2019)

Because materials are used within hours, goods inward must be checked for quality and quantity on arrival, and the receipt must be recorded because it is harder to verify invoices to goods later held in a warehouse. A pre-numbered goods received record noting the order number, time and quantity, copied to accounts for matching with the electronic invoice, meets both needs. Monthly, quarterly and annual checks are too late to protect production.

25. Stibbe Ltd found that it had paid invoices which had already been credited because the goods were returned by the quality controller as poor quality. Which controls would best prevent this from happening again?

A) Pre-numbering of order forms, and safeguarding of blank order forms in the purchasing department
B) Segregating requisition and ordering duties, and a central policy for choosing suppliers
C) Locking the warehouse, and restricting access to the stores to the stores manager only
D) Purchase return notes copied to accounts, and review of credit notes before the payment run

Correct: D difficult ISA 315 (Revised 2019)

The controls that prevent paying for goods that have been returned are raising purchase return notes, sending a copy to the accounts department, reviewing credit notes before the payment run is authorised, and regularly comparing supplier statements with payables ledger accounts. Controls over order forms, supplier choice and physical access to stores address different risks.