TheInternal Controlstopic in the APS Certification Program highlights the importance of a sound records management plan for AP processes, particularly for compliance, security, and financialanalysis. A records management plan ensures that documents (e.g., invoices, vendor data) are organized, secure, and accessible, supporting legal protection, information security, and expenditure analysis.
Item I (To afford some protection against lawsuits): A records management plan ensures documentation is available to defend against legal claims, such as vendor disputes or audits, providing evidence of compliance. This is a valid reason.
Item II (To safeguard vital information): Records management protects sensitive data (e.g., vendor TINs, payment details) from loss or unauthorized access, ensuring confidentiality and compliance. This is a valid reason.
Item III (To analyze and manage expenditures): Records management enables AP to track and analyze spending patterns, supporting budgeting and cost control. This is a valid reason.
Option A (III only): Incorrect, as Items I and II are also valid reasons.
Option B (I and II only): Incorrect, as Item III is also a valid reason.
Option C (I, II, and III): Correct, as all three items are reasons for a sound records management plan.
Option D (I only): Incorrect, as Items II and III are also valid reasons.
Reference to IOFM APS Documents: The APS e-textbook underInternal Controlsstates, “A sound records management plan protects against lawsuits by maintaining auditable records, safeguards vital information like vendor data, and enables expenditure analysis for cost management.” The training video discusses records management as a critical control, citing its role in legal compliance, data security, and financial oversight.
