IOFM APS Dumps Questions Answers

The three-way match is a standardized accounts payable process used to verify the legitimacy of a supplier invoice before payment by cross-referencing three key documents: the purchase order (PO), the supplier invoice, and the receiving documents (also referred to as the receiving report, goods received note, or delivery receipt). This process ensures that the invoice reflects the agreed-upon terms of the purchase order and that the goods or services were actually delivered as specified, thereby mitigating risks of overpayment, fraud, or errors.

The correct answer is “Receiving documents,” as these confirm the delivery of goods or services and are a core component of the three-way match. The purchase order authorizes the purchase, specifying quantities, prices, and terms. The invoice details the supplier’s request for payment. The receiving documents verify that the ordered items were delivered, matching the quantities and conditions specified in the PO.

The other options are not part of the three-way match:

Remittance adviceis a document sent to the supplier to confirm payment details after the payment is made, not part of the verification process.

Bank draftis a payment instrument, not a document used for matching.

P-card statementrelates to procurement card transactions, which are typically not subject to the three-way match process, as they follow a different reconciliation process.

The NetSuite source clearly defines the three-way match: “Three-way matching is a payment verification technique that compares the details associated with a particular purchase across a trio of related documents… Purchase order, which authorizes a purchase to be made… Delivery receipt, or a receiving report, which confirms that the purchase was delivered… Supplier’s invoice, which lists how much the buyer owes the supplier”. Similarly, the Tipalti source states: “PO Matching: Ensure accuracy and prevent fraud with 2 and 3-way PO matching,” reinforcing that the three-way match involves the PO, invoice, and receiving documents. The Ramp source further clarifies: “3-way matching is a fraud-prevention process used by accounts payable teams to verify invoices before payment. It cross-checks three documents: Purchase order (PO)… Goods received note (GRN)… Supplier invoice”.

While the IOFM APS study guide is not directly quoted in the provided sources for this specific question, the IOFM Accounts Payable Specialist Certification Program emphasizes the three-way match under the “Invoices” and “Internal Controls” modules. The program description notes that it covers “peer-tested best practices for each phase of the payment process – from receipt of invoice, through processing and payment,” which includes the three-way match process. The focus on accuracy, compliance, and fraud prevention in IOFM’s curriculum aligns with the standard definition of the three-way match involving the PO, invoice, and receiving documents.

TheTax and Regulatory Compliancetopic in the APS Certification Program covers the Foreign Account Tax Compliance Act (FATCA), enacted in 2010 to combat tax evasion by U.S. taxpayers using foreign accounts. FATCA requires foreign financial institutions (FFIs) to report U.S. account holders’ information to the IRS, making it harder for individuals and organizations to hide income offshore and avoid U.S. taxes.

Option A (To ensure the privacy of individuals or organizations that bank outside of the U.S.): Incorrect. FATCA reduces privacy by requiring FFIs to report account details to the IRS, not protect it.

Option B (To make the rules regarding reporting payments made to U.S. persons and non-U.S. persons more consistent): Incorrect. FATCA focuses on reporting foreign accounts of U.S. taxpayers, not harmonizing payment reporting rules for U.S. and non-U.S. persons.

Option C (To make it more difficult for individuals or organizations to avoid paying taxes by banking outside of the U.S.): Correct. FATCA’s primary purpose is to prevent tax evasion by requiring FFIs and certain non-financial foreign entities to report U.S. account holders’ financial information, ensuring taxable income is reported.

Option D (To respond to attempts by foreign governments to capture taxes on activities of U.S. persons in their countries): Incorrect. FATCA addresses U.S. tax compliance, not foreign governments’ tax policies.

Reference to IOFM APS Documents: The APS e-textbook underTax and Regulatory Compliancestates, “FATCA was enacted to combat tax evasion by requiring foreign financial institutions to report U.S. account holders’ information, making it difficult to avoid taxes through offshore accounts.” TheMaster Guide to Form 1099 Compliance, a recommended IOFM resource, explains, “FATCA ensures compliance by imposing withholding on payments to non-compliant FFIs, targeting U.S. taxpayers hiding income abroad.” The training video reinforces this, noting FATCA’s role in “closing loopholes for offshore tax evasion.”

TheTax and Regulatory Compliancetopic in the APS Certification Program covers IRS guidelines for determining independent contractor status, critical for 1099 reporting and avoiding worker misclassification. The IRS uses three categories:Behavioral Control(degree of controlover work results),Financial Control(control over finances, e.g., payment terms, investment in tools), andType of Relationship(contract terms, permanency). Thejob titleassigned is not a factor, as status depends on actual work arrangements, not labels.

Option A (The degree of control the employer exercises over the worker’s work results): Part of Behavioral Control, assessing how much the employer directs the worker’s tasks. This is a valid category.

Option B (The amount of control the employer has over the worker’s finances): Part of Financial Control, evaluating payment methods, expense reimbursement, and worker investment. This is a valid category.

Option C (The job title assigned to the worker): Not a factor. The IRS focuses on the nature of the work relationship, not the title (e.g., “contractor” vs. “employee”). Correct answer.

Option D (The type of relationship established between the parties): Part of Type of Relationship, considering contracts, benefits, and permanency. This is a valid category.

Reference to IOFM APS Documents: The APS e-textbook underTax and Regulatory Compliancestates, “IRS independent contractor status is determined by Behavioral Control, Financial Control, and Type of Relationship, not by job titles, which are irrelevant to actual work arrangements.” The training video explains, “Job titles don’t determine contractor status; the IRS looks at control and relationship factors.”