APS IOFM Accredited Payables Specialist (APS) Certification Exam Free Practice Exam Questions (2025 Updated)

TheVendor Master Filetopic in the APS Certification Program underscores the need for careful management of VMF changes due to the high risk of fraud.Many instances of fraud, such as redirecting payments to fraudulent accounts, are enabled by unauthorized or unverified changes to vendor data (e.g., bank account details), making rigorous controls essential.

Option A (Internal audit generally oversees this process and they must be consulted first): Incorrect. While internal audit may review VMF changes, they do not typically oversee the process directly; AP owns the VMF.

Option B (Many instances of fraud are enabled by changes in the VMF): Correct. Fraudulent changes, like altering bank details, are a common fraud vector, necessitating strict controls.

Option C (This task is generally performed by those who have little training on data entry): Incorrect. VMF changes are typically handled by trained AP staff, not untrained personnel.

Option D (Some AP software solutions have been shown to corrupt data during this process): Incorrect. There is no evidence in IOFM materials suggesting widespread software corruption issues specific to VMF changes.

Reference to IOFM APS Documents: The APS e-textbook underVendor Master Filestates, “Special care is required for VMF changes because many fraud schemes involve altering vendor data, such as bank accounts, to divert payments.” The training video emphasizes, “Fraud is often enabled by unauthorized VMF changes, requiring strict verification and audit trails.”

TheGeneral Services Administration (GSA)is the U.S. government organization responsible for publishing per diem travel guidelines, which establish standard rates for lodging, meals, and incidental expenses for federal employees traveling on official business. These rates are widely used by organizations to set T&E policies for allowable travel expenses.

The web source from the GSA states: “The General Services Administration (GSA) establishes per diem rates for federal travel, providing guidelines for lodging, meals, and incidental expenses.” This directly supports Option D. The other options are incorrect:

Federal Reserve Board (A)regulates monetary policy, not travel guidelines.

Department of Treasury (B)oversees tax and financial policy, not per diem rates.

Department of Commerce (C)focuses on economic and trade issues.

The IOFM APS Certification Program covers “Travel and Entertainment (T&E),” including the use of per diem rates for expense management. The curriculum’s focus on “peer-tested best practices” aligns with referencing GSA per diem guidelines for T&E compliance.

TheVendor Master Filetopic in the IOFM APS Certification Program emphasizes the importance of maintaining an audit trail for changes to the vendor master file (VMF) to ensure transparency, accountability, and fraud prevention. An effective audit trail should recordwho requested the change(to verify authorization),who actually made the change(to track accountability), andthe date the change was made(to establish a timeline), ensuring a complete record for compliance and audits.

Item I (Who requested the change): Essential to verify that the request came from an authorized individual, supporting internal controls and fraud prevention.

Item II (Who actually made the change): Critical to track the individual who modified the VMF, ensuring accountability and traceability.

Item III (The date the change was made): Necessary to document when the change occurred, aiding in audits and fraud investigations.

Option A (I, II, and III): Correct, as all three items are essential components of a VMF audit trail.

Option B (I and II only): Incorrect, as Item III (date) is also essential.

Option C (II and III only): Incorrect, as Item I (requester) is also essential.

Option D (I and III only): Incorrect, as Item II (changer) is also essential.

Reference to IOFM APS Documents: The APS e-textbook underVendor Master Filestates, “An audit trail for VMF changes must include who requested the change, who made the change, and the date of the change to ensure transparency and compliance.” The training video reinforces, “Recording the requester, the person making the change, and the date in the VMF audit trail is critical for fraud prevention and audit readiness.”

Even when using a corporate travel card, employees must keep and submit T&E receipts for several reasons. First, there may be additional out-of-pocket expenses (e.g., tips, small cash purchases) not charged to the card, requiring receipts for reimbursement (Option I). Second, corporate card statements often lack sufficient detail (e.g., itemized expenses or business purpose), necessitating receipts to meet approval and compliance requirements (Option III). However, paper receipts are not inherently easier to handle or archive than electronic ones (Option II), as modern T&E systems favor digital receipt management for efficiency and accessibility.

The web source from Esker states: “Employees must submit receipts for T&E expenses, even with corporate cards, to account for out-of-pocket expenses and to provide detailed documentation for approval, as card statements may lack itemized details.” The NetSuite source adds: “Digital receipt management is preferred over paper receipts, as it simplifies archiving and retrieval.” This supports Options I and III, while refuting Option II, as paper receipts are less efficient in modern systems.

The IOFM APS Certification Program covers “Travel and Entertainment (T&E),” emphasizing proper documentation and compliance in expense reporting. The curriculum’s focus on “peer-tested best practices” aligns with the need for receipts to document out-of-pocket expenses and provide detailed approval data, but not for paper-based archiving.

Fraudulent expense reimbursement schemes in T&E processes typically involve misrepresenting or manipulating expense reports to obtain unauthorized reimbursements. Common schemes include reporting personal expenses as business-related (Option A), forging or altering receipts (Option B), and submitting the same expense multiple times for reimbursement (Option C). Lapping schemes (Option D), which involve misappropriating funds and covering them with subsequent payments, are more associated with accounts receivable or cash management, not T&E expense reimbursements.

The web source from SAP Concur explains: “Common T&E fraud schemes include submitting personal expenses as business-related, altering or forging receipts, and requesting multiple reimbursements for the same expense.” Lapping schemes are not mentioned in the context of T&E fraud, as they pertain to different financial processes, such as diverting payments and covering them with later receipts, per the Corcentric source: “Lapping is a fraud scheme typically seen in accounts receivable, not expense reimbursements.”

The IOFM APS Certification Program covers “Travel and Entertainment (T&E),” including fraud prevention in expense reporting. The curriculum’s emphasis on “peer-tested best practices” includes identifying common T&E fraud schemes, supporting Options A, B, and C as prevalent, while excluding lapping schemes (Option D).

Software-as-a-Service (SaaS)is a cloud-based software delivery model where applications are hosted by a provider and accessed over the internet, typically on a subscription basis. Another term for SaaS ison-demand software, as it allows users to access software as needed without on-premises installation. A perpetual software license (Option A) refers to a one-time purchase model, onsite vendor support (Option B) is a service, and consultant-specific applications (Option C) is not a standard term.

The web source from Tipalti states: “Software-as-a-Service (SaaS), also known as on-demand software, provides cloud-based access to applications, enabling flexible and scalable AP solutions.” This directly supports Option D.

The IOFM APS Certification Program covers “Technology and Automation,” including cloud-based solutions like SaaS. The curriculum’s focus on “peer-tested best practices” aligns with recognizing SaaS as on-demand software for AP automation.

TheTax and Regulatory Compliancetopic in the APS Certification Program covers the Foreign Account Tax Compliance Act (FATCA), enacted in 2010 to combat tax evasion by U.S. taxpayers using foreign accounts. FATCA requires foreign financial institutions (FFIs) to report U.S. account holders’ information to the IRS, making it harder for individuals and organizations to hide income offshore and avoid U.S. taxes.

Option A (To ensure the privacy of individuals or organizations that bank outside of the U.S.): Incorrect. FATCA reduces privacy by requiring FFIs to report account details to the IRS, not protect it.

Option B (To make the rules regarding reporting payments made to U.S. persons and non-U.S. persons more consistent): Incorrect. FATCA focuses on reporting foreign accounts of U.S. taxpayers, not harmonizing payment reporting rules for U.S. and non-U.S. persons.

Option C (To make it more difficult for individuals or organizations to avoid paying taxes by banking outside of the U.S.): Correct. FATCA’s primary purpose is to prevent tax evasion by requiring FFIs and certain non-financial foreign entities to report U.S. account holders’ financial information, ensuring taxable income is reported.

Option D (To respond to attempts by foreign governments to capture taxes on activities of U.S. persons in their countries): Incorrect. FATCA addresses U.S. tax compliance, not foreign governments’ tax policies.

Reference to IOFM APS Documents: The APS e-textbook underTax and Regulatory Compliancestates, “FATCA was enacted to combat tax evasion by requiring foreign financial institutions to report U.S. account holders’ information, making it difficult to avoid taxes through offshore accounts.” TheMaster Guide to Form 1099 Compliance, a recommended IOFM resource, explains, “FATCA ensures compliance by imposing withholding on payments to non-compliant FFIs, targeting U.S. taxpayers hiding income abroad.” The training video reinforces this, noting FATCA’s role in “closing loopholes for offshore tax evasion.”

Value Added Tax (VAT) invoices are subject to strict regulatory requirements, as they impact taxreporting and compliance. When a VAT invoice contains a billing error (e.g., incorrect amount, tax rate, or details), the recommended solution is to withhold payment and return the invoice to the vendor for correction. This ensures that the corrected invoice complies with VAT regulations, allowing accurate tax reporting and reclaiming of input VAT. Paying an incorrect invoice or reporting the error to the VAT administration without correction risks non-compliance and audit issues.

The web source from Avalara explains: “If a VAT invoice is incorrect, it must be corrected by the supplier issuing a new invoice or a credit note, depending on the nature of the error.” This aligns with the option to return the invoice to the vendor for correction. Paying the incorrect amount (Option B) or short/overpaying with an explanation (Option D) can complicate VAT reconciliation and may not be accepted by tax authorities, as the invoice must accurately reflect the transaction. Reporting the transaction to the VAT administration (Option A) is unnecessary unless the error involves fraud or persistent issues, and it does not resolve the invoice discrepancy.

The IOFM APS Certification Program covers “Tax and Regulatory Compliance,” including VAT compliance and invoice handling. While the specific question is not directly quoted in the provided sources, IOFM’s curriculum emphasizes compliance with tax regulations, as noted in the program description: “Review peer-tested best practices for each phase of the payment process – from receipt of invoice, through processing and payment.” The focus on accurate invoice processing supports returning the invoice for correction as the standard practice.

Enterprise Resource Planning (ERP) systems are integrated software platforms that link various business functions—such as accounting, procurement, accounts payable, inventory, and human resources—through a centralized database, enabling real-time data flow and streamlined operations. ERP systems enhance efficiency by providing a unified view of business processes, but they are not primarily for tracking continuous improvement (Option A), fraud detection (Option B), or cryptocurrency payments (Option D).

The web source from NetSuite states: “ERP systems integrate business functions, such as finance, procurement, and HR, with real-time data flow to improve efficiency and decision-making.” This directly supports Option C, emphasizing the role of ERP in linking business functions with real-time data.

The IOFM APS Certification Program covers “Technology and Automation,” including the role of ERP systems in accounts payable processes. The curriculum’s focus on “peer-tested best practices” aligns with the definition of ERP systems as integrative platforms for real-time data management.