CLG 006 Certifying Officer Practice Exam

Which document is critical to keep for audit purposes in the payment process?

1. Payment voucher

2. Employee evaluation

3. Budget report

4. General ledger

The correct answer is: Payment voucher

The correct choice is the payment voucher, as it serves a crucial role in the payment process and is specifically designed to provide a clear record of financial transactions. A payment voucher typically includes essential details such as the transaction amount, the purpose of the payment, relevant dates, and supporting documentation. By retaining this document, organizations can ensure they have a reliable reference for auditing purposes, facilitating transparency and accountability in their financial processes. The significance of the payment voucher in audits lies in its function of verifying that payments have been properly authorized, supported by appropriate documentation, and correctly recorded. Auditors rely heavily on such documents to trace the flow of funds and confirm the legitimacy of expenses. While the other documents mentioned—like the employee evaluation, budget report, and general ledger—are important for various aspects of financial management or organizational operations, they do not provide the same level of specificity and direct relevance to the payment process as a payment voucher does. Each of these serves distinct purposes, but for the context of auditing payment transactions, the payment voucher is undeniably fundamental.