CLG 006 Certifying Officer Practice Exam

What forms an audit trail for payment vouchers?

1. Certification reports and emails

2. Payment voucher and supporting documentation

3. Verbal confirmations of payments

4. Historical payment records

The correct answer is: Payment voucher and supporting documentation

The correct answer is the payment voucher and supporting documentation. This combination serves as a comprehensive audit trail, ensuring that all transactions are properly documented and can be reviewed for accuracy and compliance. The payment voucher itself acts as a formal request for payment, detailing the amount owed and the purpose of the payment. Supporting documentation, such as invoices, receipts, and contracts, provides the necessary evidence to substantiate the payment claim. Together, they offer a clear and traceable path that auditors can follow, allowing them to verify the legitimacy of payments and adherence to policies and regulations. In contrast, certification reports and emails, while useful, do not provide the same level of direct evidence of transactions as a payment voucher and its supporting documents do. Verbal confirmations lack permanence and may be subject to misunderstandings or miscommunications. Historical payment records might show past transactions, but they do not offer the immediate context and justification that the payment voucher and supporting documents provide for a specific transaction.