CLG 006 Certifying Officer Practice Exam

What must be established for a payment to be deemed valid?

1. Correct purchase documentation

2. Proper authorization and justification

3. Confirmation of receipt of goods or services

4. All of the above

The correct answer is: All of the above

For a payment to be considered valid, all elements need to be established, which is why the answer encompasses all of these components. Correct purchase documentation ensures that there is a record of what was ordered and agreed upon, establishing a clear basis for the transaction. Proper authorization and justification are crucial to verify that the payment has been approved by someone with the authority to do so, preventing unauthorized spending. Lastly, confirmation of receipt of goods or services serves as proof that what was paid for has been delivered or rendered, ensuring that the financial commitment is legitimate. Each element plays a critical role in creating a transparent and accountable payment process, making it essential that all are satisfied to declare a payment valid.