The Frostproof vendor setup file shows this issue: W-9 missing for service vendor. What administrative control should be applied?
Correct Answer
D) vendor setup hold
Vendor setup controls should verify tax records, hold incomplete files, and prevent duplicate master records.
Why This Is the Correct Answer
Vendor setup controls should verify tax records, hold incomplete files, and prevent duplicate master records.
Why the Other Options Are Wrong
Option A: bank covenant memo
bank covenant memo puts the item in the wrong financial bucket, timing, base, or comparison for vendor setup control.
Option B: daily report photo
daily report photo puts the item in the wrong financial bucket, timing, base, or comparison for vendor setup control.
Option C: equipment lease diary
equipment lease diary puts the item in the wrong financial bucket, timing, base, or comparison for vendor setup control.
Memory Technique
Vendor ledger for Manager Reviews: put controls in the right drawer.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Business Administration, Vendor Setup and Master File Controls; use the stated business record or control rule to verify the answer.
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