IOFM Accredited Payables Specialist (APS) Certification Exam APS Exam Dumps: Updated Questions & Answers (September 2025)

TheVendor Master Filetopic in the APS Certification Program highlights vendor validation to prevent fraud, including checking addresses for red flags. A significant red flag is when avendor’s address matches one of the organization’s own locations, as this may indicate insider fraud (e.g., an employee creating a fake vendor using a company address).

Option A (The vendor has the same address as one of the organization’s own locations): Correct. This is a red flag, as it suggests potential fraud, such as an employee setting up a fictitious vendor at a company site.

Option B (The vendor does not appear to use a post office box): Incorrect. Not using a P.O. box is not inherently suspicious; many legitimate vendors use physical addresses.

Option C (The vendor’s warehouse and its accounts receivable address are different): Incorrect. Different addresses for operational and financial functions are common and not a red flag.

Option D (The vendor is located in an unincorporated area): Incorrect. Location in an unincorporated area is not inherently suspicious and does not indicate fraud.

Reference to IOFM APS Documents: The APS e-textbook underVendor Master Filestates, “A red flag during vendor address checks is when the vendor’s address matches an organization’s own location, indicating potential insider fraud.” The training video notes, “Always verify vendor addresses against company locations to detect fraudulent setups.”

TheTechnology and Automationtopic in the APS Certification Program covers the use of technology to streamline AP processes and the potential for outsourcing certain functions to business process outsourcing (BPO) providers. BPO is commonly used for repetitive, transaction-based tasks such as check printing, utility payments, and invoice imaging, which benefit from automation and economies of scale. However,performance monitoring—which involves analyzing AP metrics, ensuring compliance, and optimizing processes—is typically retained in-house, as it requires strategic oversight and organizational knowledge.

Option A (Performance monitoring): Performance monitoring involves tracking key performance indicators (KPIs) like invoice processing time, error rates, and compliance with internal controls. This function requires deep understanding of the organization’s goals and policies, making it less suitable for outsourcing. This is the correct answer.

Option B (Check printing): Check printing is a routine, mechanical task that can be efficiently outsourced to BPO providers with secure printing and mailing capabilities. It is a common BPO candidate, so it is not the exception.

Option C (Utility payments): Utility payments are standardized, recurring transactions thatcan be automated and outsourced to BPO providers, often integrated with electronic payment systems. This is a good BPO candidate, so it is not the exception.

Option D (Invoice imaging): Invoice imaging (scanning and digitizing invoices) is a repetitive task that leverages automation and is frequently outsourced to BPO providers with imaging technology. This is a common BPO candidate, so it is not the exception.

Reference to IOFM APS Documents: The APS e-textbook underTechnology and Automationdiscusses BPO as a strategy for “outsourcing transactional AP tasks like invoice imaging, check printing, and payment processing to improve efficiency.” It notes that strategic functions, such as “performance monitoring and analytics,” are typically retained in-house to maintain control over compliance and process optimization. The IOFM training video emphasizes that BPO is ideal for high-volume, low-complexity tasks, while performance monitoring requires internal expertise to align with organizational objectives.

TheInvoicestopic in the APS Certification Program covers the complexities of value-added tax (VAT) refunds, particularly for businesses operating in VAT jurisdictions (e.g., EU). VAT refund processes are stringent, requiring specific invoice details like the company’s name and address (Item I) and, in many cases, original invoices (Item III). However,only authorized agents applying for refunds (Item II)is not universally true, as businesses or their tax representatives can often file directly, depending on the jurisdiction.

Item I (Invoices must include the name and address of the company filing for the refund): True. VAT regulations (e.g., EU VAT Directive) require invoices to include the claimant’s name and address to verify eligibility. This contributes to refund difficulty.

Item II (Only authorized agents may apply for the refunds): Not universally true. While some jurisdictions allow or require agents, businesses can often file directly or designate representatives without mandating third-party agents. This does not consistently contribute to difficulty.

Item III (An original invoice must be submitted): True. Many VAT jurisdictions require original invoices (or certified copies) to validate claims, increasing administrative burden and difficulty.

Option A (II only): Incorrect, as Item II is not universally applicable, and Items I and III are valid.

Option B (I only): Incorrect, as Item III also contributes to refund difficulty.

Option C (I and III only): Correct, as Items I and III are standard requirements that make VAT refunds difficult.

Option D (II and III only): Incorrect, as Item II is not a universal requirement.

Reference to IOFM APS Documents: The APS e-textbook underInvoicesstates, “VAT refund processes are complex due to requirements like including the claimant’s name and address on invoices and submitting original invoices.” It notes that “while agents may assist, direct filing bybusinesses is often permitted, depending on the jurisdiction.” The training video discusses VAT refunds, highlighting the need for “specific invoice details and original documents” as key challenges.

TheVendor Master Filetopic in the APS Certification Program addresses managing dynamic vendor data, such as contact information, which can change frequently. An efficient approach is toinclude a contractual requirementfor vendors to notify the organization in writing of personnel or contact changes, ensuring the VMF remains accurate without excessive manual effort.

Option A (Conduct a thorough audit semiannually): Inefficient, as semiannual audits are too infrequent for frequently changing data and resource-intensive.

Option B (Include only the vendor web address): Inefficient and risky, as websites may not provide current contact details, and manual checks are time-consuming.

Option C (Assign an individual to review weekly): Inefficient, as weekly reviews are labor-intensive and impractical for large vendor bases.

Option D (Include in the vendor contract notification of personnel changes): Correct. Contractual notification shifts responsibility to vendors, ensuring timely updates with minimal organizational effort.

Reference to IOFM APS Documents: The APS e-textbook underVendor Master Filestates, “To manage frequently changing contact information, include contractual terms requiring vendors to notify the organization of changes in writing, reducing manual updates.” The training video notes, “Efficient VMF management leverages vendor contracts to ensure timely contact updates, avoiding labor-intensive audits.”

In thePaymentsandInvoicestopics of the IOFM APS Certification Program, double-entry accounting principles are covered to ensure AP professionals understand how transactions are recorded. When an invoice is paid, the organization settles an accounts payable (AP) liability, which is a balance sheet account representing money owed to vendors. The payment typically involves a cash outflow (or reduction in a bank account) and a corresponding reduction in the AP liability.

In double-entry accounting, every transaction affects at least two accounts, with debits equaling credits. The process of paying an invoice involves:

When the invoice isreceived, the AP department records the liability by debiting an expense account (or asset, depending on the purchase) and crediting the AP liability account. This step is not the focus of the question.

When the invoice ispaid, the AP liability is reduced, and cash is reduced. The correct journal entry is:

Debit Accounts Payable (AP liability): This reduces the liability, as the organization no longer owes the vendor.

Credit Cash: This reflects the outflow of cash used to settle the invoice.

Option A (Credit cash and debit the asset account): This is incorrect because paying an invoice does not typically involve debiting a generic “asset account.” The payment reduces the AP liability, not another asset account (unless the invoice was for an asset purchase, which is not specified). Additionally, crediting cash is correct, but the pairing is wrong.

Option B (Debit the expense and credit the AP liability account): This describes the journal entry when an invoice isreceived, not when it is paid. When recording an invoice, the expense (or asset) is debited, and the AP liability is credited. This option is incorrect for the payment stage.

Option C (Debit cash (asset) and credit the AP liability account): This is incorrect because debiting cash would imply an increase in the cash account, which does not occur when paying an invoice (cash decreases). The direction of the cash entry is reversed.

Option D (Credit cash and debit the AP liability account): This is the correct journal entry for paying an invoice. Debiting the AP liability reduces the amount owed to the vendor, and crediting cash reflects the payment made (cash decreases). This aligns with standard double-entry accounting principles.

Reference to IOFM APS Documents: The IOFM APS e-textbook and training video under thePaymentssection cover double-entry accounting for AP transactions. The curriculum explains that “when an invoice is paid, the accounts payable liability account is debited to reduce the obligation, and the cash account is credited to reflect the payment outflow.” This is reinforced in the practice quizzes, which test understanding of journal entries for invoice payments. The APS program also references best practices for cash management and payment processing, emphasizing accurate accounting to maintain financial integrity.

Procurement cards (P-cards) are corporate credit cards used for business purchases, and issuers often offer rebates or incentives to encourage their use. These rebates are typically based on the volume of spend, meaning the total dollar amount charged to the P-card over a specified period. This incentivizes organizations to consolidate more purchases on the card, benefiting both the issuer (through transaction fees) and the organization (through rebates).

The web source from Corcentric states: “P-card issuers commonly offer rebates based on the total volume of spend, encouraging organizations to increase card usage for eligible purchases.” This confirms that rebates are tied to the dollar amount spent (Option A), not the number of transactions (Option B), frequency of use (Option C), or number of cards issued (Option D).

The IOFM APS Certification Program covers “Payments,” including P-card programs and their benefits. The curriculum’s focus on “peer-tested best practices for each phase of the payment process” aligns with the industry standard that rebates are based on spend volume, as this drives cost savings and program efficiency.

TheInternal Controlstopic in the APS Certification Program includes understanding key performance indicators (KPIs) to measure AP department performance. KPIs are metrics that track efficiency, accuracy, and cost-effectiveness, such as invoices paid on time, cost per invoice, and lost discounts.Positive pay, however, is a fraud prevention tool, not a performance metric.

Option A (Invoices paid on time): This is a KPI, measuring the percentage of invoices paid by their due date, reflecting AP efficiency and vendor relationship management.

Option B (Positive pay): Positive pay is a banking service that matches issued checks against presented checks to prevent fraud. It is a control mechanism, not a KPI, as it does not measure performance. This is the correct answer.

Option C (Cost per invoice): This is a KPI, calculating the average cost to process an invoice, used to assess operational efficiency.

Option D (Lost discounts): This is a KPI, tracking missed early payment discounts, which indicates opportunities for cost savings.

Reference to IOFM APS Documents: The APS e-textbook underInternal Controlslists common AP KPIs, including “percentage of invoices paid on time, cost per invoice, and lost early payment discounts,” as metrics to evaluate performance. It describes positive pay as “a fraud prevention tool under internal controls, not a performance indicator.” The training video reinforces this by discussing KPIs for benchmarking and positive pay as a separate control mechanism.

Wire transfers are a secure and immediate payment method typically used for high-value transactions due to their reliability and speed, despite higher transaction fees compared to other methods like ACH. Organizations commonly use wire transfers for high dollar payments, such as large vendor payments, international transactions, or critical one-time payments.

The web source from Corcentric explains: “Wire transfers are often used for high-value payments where speed and security are critical, such as large supplier payments or international transactions.” This aligns with Option B.

Direct deposit of executive pay (A)is typically handled via ACH for regular payroll.

Low dollar bulk payments (C)are more cost-effectively processed via ACH or checks.

Rent or mortgage payments (D)may use wire transfers in some cases but are not the most common use.

The IOFM APS Certification Program covers “Payments,” including payment methods like wire transfers. The curriculum’s focus on “peer-tested best practices” supports the use of wire transfers for high dollar payments due to their security and immediacy.

The three-way match is a critical accounts payable process that involves cross-referencing three documents: the purchase order (PO), the supplier invoice, and the receiving report (or goodsreceived note/delivery receipt). This process ensures that payments are made only for goods or services that were ordered and delivered, preventing errors and fraud. The question asks which document is typically the most difficult to obtain in a timely manner.

The receiving report is often the most challenging to obtain promptly because it depends on the physical or logistical confirmation of goods or services delivered, which involves coordination with receiving or inventory departments outside the accounts payable team’s direct control. Delays can occur due to manual processes, incomplete deliveries, or discrepancies in the quantity or quality of goods received, requiring additional verification. In contrast, the e-invoice is typically provided directly by the supplier, and the purchase order is an internal document generated by the purchasing department, both of which are generally more readily available. P-card statements and expense reports are not standard components of the three-way match, as they relate to different processes (procurement card transactions and employee reimbursements, respectively).

The source from NetSuite explains: “Three-way matching is an AP process used to verify a supplier invoice by checking it against its corresponding purchase order and order receipt. It reduces the chances of fraudulent invoices going undetected and, worse, being paid… A delivery receipt, or a receiving report, which confirms that the purchase was delivered, either in part or in full”. Additionally, the Ramp source notes: “Goods received note (GRN): Proof of what was delivered,” highlighting that this document requires verification from the receiving department, which can introduce delays.

No direct IOFM APS study guide extract specifically addresses the timeliness of obtaining the receiving report, but the general emphasis in IOFM materials on the importance of internal controls and process efficiency in the three-way match supports the conclusion that the receiving report’s dependency on external departments makes it the most difficult to obtain promptly. The IOFM APS Certification Program covers “Invoices” and “Internal Controls,” which include best practices for managing the three-way match process, as noted in the IOFM course description: “Review peer-tested best practices for each phase of the payment process – from receipt of invoice, through processing and payment”.

TheInternal Controlstopic in the IOFM APS Certification Program emphasizes the role of accounts payable (AP) in managing financial processes, ensuring compliance, and supporting organizational objectives. AP has a significant influence on several key areas, including vendor relationships (through timely payments and communication), cash management (by optimizing payment timing and methods), and financial statements (by ensuring accurate recording of liabilities and expenses). However, AP typically has minimal direct influence oninventory turnover, which is more closely tied to supply chain and inventory management functions.

Option A (Inventory turnover): Inventory turnover measures how quickly a company sells and replaces its inventory. While AP processes payments for inventory purchases, it does not directly control inventory levels, purchasing decisions, or sales velocity, which are managed by procurement and sales teams. This is the correct answer, as it is the exception.

Option B (Vendor relationships): AP directly influences vendor relationships by ensuring timely and accurate payments, resolving disputes, and maintaining vendor master file data. This is a core AP responsibility, so it is not the exception.

Option C (Cash management): AP plays a critical role in cash management by scheduling payments to optimize cash flow, using electronic payments, and implementing positive pay to prevent fraud. This is a key AP function, so it is not the exception.

Option D (Financial statements): AP impacts financial statements by recording invoices (affecting liabilities and expenses) and payments (affecting cash and liabilities). Accurate AP processes ensure reliable financial reporting, so this is not the exception.

Reference to IOFM APS Documents: The APS e-textbook underInternal Controlshighlights AP’s role in “supporting financial integrity through accurate transaction recording and cash flow management.” It notes that AP professionals manage vendor payments and cash outflows, directly affecting vendor relationships, cash management, and financial statement accuracy. However, inventory turnover is described as a supply chain metric, outside AP’s primary scope. The IOFM training video reinforces this by focusing on AP’s responsibilities in payment processing and financial reporting, with no mention of inventory turnover as a direct AP function.