APS Exam Preparation Material | Accredited Payables Specialist (APS) Certification Exam

Explanation:
The Payments topic in the APS Certification Program covers accounting concepts like accrued expenses, which are critical for accurate financial reporting. Accrued expenses are expenses that have been incurred (i.e., the organization has received goods or services) but have not yet been paid or recorded (posted) in the accounts payable system, often because an invoice has not been received by the period’s end. These are recognized to match expenses with the period they relate to, per accrual accounting principles.
Option A (Forecasted expenses for which an invoice has not been received): Incorrect, as accrued expenses are not forecasted (estimated future costs); they are actual expenses already incurred.
Option B (Planned expenditures that have not been incurred): Incorrect, as planned but unincurred expenditures are not recognized in accounting until incurred.
Option C (Incurred expenses that have not been posted in the current period): Correct. Accrued expenses are costs incurred (e.g., utilities used) but not yet recorded or paid, often due to a missing invoice, and are accrued to ensure accurate period-end reporting.
Option D (Pre-paid expenses that were paid with petty cash): Incorrect, as pre-paid expenses are paid in advance and recorded as assets, not accrued expenses, which are unpaid liabilities.
Reference to IOFM APS Documents: The APS e-textbook under Payments defines accrued expenses as “expenses incurred in the current period but not yet posted or paid, often recorded at period-end to reflect true financial obligations.” The training video provides examples, such as accruing wages or utilities when invoices are delayed, emphasizing the importance of accrual accounting for financial accuracy.

Explanation:
Potential red flags for T&E expenses that fall outside of company policy include charges for airline upgrades (Option I), which may indicate unauthorized luxury spending, and weekend stays (Option III), which could suggest personal travel disguised as business-related. These expenses often require additional scrutiny to ensure compliance with T&E policies. Cab fares (Option II) are typically routine and not inherently a red flag unless excessive or unsupported, making them less likely to be a policy violation compared to upgrades or weekend stays.
The web source from SAP Concur states: “Red flags in T&E expenses include charges for airline upgrades, which may violate policy on allowable travel classes, and weekend stays, which could indicate personal travel.” This supports Options I and III. Cab fares are noted as common expenses that require receipts but are not typically flagged unless unusual, per the Esker source: “Routine expenses like cab fares are less likely to be red flags compared to upgrades or extended stays.”
The IOFM APS Certification Program covers “Travel and Entertainment (T&E),” emphasizing fraud detection and policy compliance. The curriculum’s focus on “peer-tested best practices” aligns with identifying airline upgrades and weekend stays as potential red flags.
References:
IOFM Accounts Payable Specialist (APS) Certification Program, covering Travel and Entertainment (T&E)
SAP Concur: “Red flags in T&E expenses include charges for airline upgrades… and weekend stays”
Esker: “Routine expenses like cab fares are less likely to be red flags”

Explanation:
The Internal Controls topic in the APS Certification Program includes understanding the broader organizational context in which AP operates, including governance and strategic objectives. An organization’s mission statement is a high-level declaration of its purpose, values, and strategic direction. It provides methodology and direction by guiding decision-making and aligning processes with the organization’s goals, rather than detailing specific policies, ethics standards, or metrics.
Option A (Policies and procedures): Policies and procedures are operational guidelines that dictate how tasks (e.g., AP processes) are performed. A mission statement does not provide these details; it sets a broader vision. This option is incorrect.
Option B (Ethics and compliance standards): While a mission statement may reflect ethical values, it is not the primary vehicle for defining ethics and compliance standards, which are typically outlined in separate codes of conduct or compliance policies. This option is incorrect.
Option C (Methodology and direction): The mission statement articulates the organization’s purpose and strategic direction, providing a framework (methodology) for how the organization operates and where it is headed. This is the correct answer.
Option D (Metrics and benchmarking information): Metrics and benchmarking are performance measurement tools, not part of a mission statement, which focuses on vision and purpose rather than quantitative data. This option is incorrect.
Reference to IOFM APS Documents: The APS e-textbook underInternal Controlsbriefly addresses organizational governance, noting that “a mission statement defines the organization’s purpose and provides direction for all departments, including AP, to align their processes with strategic goals.” The training video emphasizes that AP professionals must understand the organization’s mission to ensure their work supports broader objectives, such as cost efficiency or vendor trust. The mission statement is described as a guiding framework, not a detailed operational or compliance document.

Explanation:
Evaluated Receipt Settlement (ERS) is a payment process that eliminates the need for a supplier invoice by triggering payments based on the purchase order (PO) and receiving documents. The quantity of goods received, as confirmed by the receiving documents (e.g., goods received note or delivery receipt), determines the payment amount, ensuring that payments reflect only what was actually delivered.
The web source from Esker states: “Evaluated Receipt Settlement (ERS) is a procedure for paying suppliers without requiring a paper invoice from the supplier… Payments are triggered by the receipt of goods or services against a purchase order.” The Corcentric source further clarifies: “ERS uses the PO to establish the agreed-upon price and quantity, but the actual payment is based on the quantity received, as verified by the receiving documents.” This confirms that the receiving documents provide the critical data on the quantity delivered, which drives the ERS payment.
Supplier Invoice (A) is incorrect, as ERS eliminates the need for invoices.
Purchase Order (B) specifies the ordered quantity and price but does not confirm actual receipt.
Advanced Shipping Notice (D) provides pre-delivery information but is not the final confirmation of received goods.
The IOFM APS Certification Program covers “Payments,” including ERS as a streamlined payment method. The curriculum’s focus on “peer-tested best practices for each phase of the payment process” aligns with the industry standard that ERS payments are based on receiving documents.
References:
IOFM Accounts Payable Specialist (APS) Certification Program, covering Payments
Esker: “Evaluated Receipt Settlement (ERS) is a procedure for paying suppliers without requiring a paper invoice from the supplier”
Corcentric: “ERS uses the PO to establish the agreed-upon price and quantity, but the actual payment is based on the quantity received”

Explanation:
Expanding the use of procurement cards (P-cards) involves strategies to increase their adoption for business purchases while maintaining control and compliance. Issuing departmental cards for vendor payments (Option B), identifying more vendors that accept P-cards (Option C), and expanding purchase categories (Option D) are all effective methods to broaden P-card usage. However, eliminating spending limits (Option A) is not recommended, as it increases the risk of fraud, overspending, and non-compliance with internal controls.
The web source from SAP Concur explains: “To expand P-card usage, organizations can work with issuers to identify additional vendors, broaden eligible purchase categories, and issue cards to departments for specific payments… Maintaining spending limits is critical to ensure control and prevent misuse.” This confirms that Options B, C, and D are valid strategies, while Option A is an exception due to the need for spending controls.
The IOFM APS Certification Program covers “Payments,” including P-card program management. The curriculum’s emphasis on “peer-tested best practices” supports controlled expansion of P-card use while reinforcing the importance of internal controls, ruling out eliminating spending limits.
References:
IOFM Accounts Payable Specialist (APS) Certification Program, covering Payments
SAP Concur: “To expand P-card usage, organizations can work with issuers to identify additional vendors, broaden eligible purchase categories, and issue cards to departments”