Association of Chartered Certified Accountants (ACCA) Certification Practice Test 2025 - Free ACCA Practice Questions and Study Guide

Question: 1 / 990

What is the first step in payment controls?

Authorization of the payment

Obtaining documentation and evidence

The first step in payment controls is obtaining documentation and evidence. This preliminary phase is crucial as it establishes a clear basis for authorizing payments by ensuring that there is valid support for each transaction. Proper documentation—such as invoices, receipts, or contracts—provides necessary details that verify the legitimacy of the payment request.

This initial step is vital because it helps prevent errors or fraudulent activities from occurring further down the payment process. Without adequate documentation, it would be challenging to justify subsequent actions, such as authorizing payments or producing payslips. It lays the groundwork for effective payment control by ensuring that all expenses are accounted for with proper backing.

After obtaining documentation, the subsequent steps, like authorization, can proceed confidently based on verified information.

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Restricted authority assignment

Producing payslips

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