Three-Way Match in Audit: Automating Purchase-to-Pay Verification

The three-way match is one of the most powerful controls in the purchase-to-pay cycle — and one of the most valuable analytics an auditor can perform. It compares three documents that should agree: the purchase order, the goods receipt note, and the supplier invoice.

Why Three-Way Match Matters

When all three documents agree on quantity, price, and description, you have strong evidence that:

• The goods or services were actually ordered (purchase order exists)
• The goods or services were actually received (goods receipt confirms delivery)
• The amount invoiced matches what was ordered and received

What Mismatches Reveal

Discrepancies between the three documents can indicate:

• Invoice without PO — unauthorized purchase or fraudulent invoice
• Invoice without GR — payment for goods never received
• Quantity mismatch — short delivery, over-billing, or theft
• Price variance — unauthorized price changes or kickback schemes
• Duplicate invoices — same invoice submitted twice for double payment

Graph Analytics Approach

AssureTwin models the three-way match as a graph problem. Purchase orders, goods receipts, and invoices are nodes; their relationships are edges. The graph analytics engine identifies:

• Unmatched nodes (orphaned POs, GRs without invoices)
• Suspicious patterns (same vendor, same amount, different dates)
• Network anomalies (circular references, self-approvals)

The three-way match is one of 17+ analytics available in every engagement simulation. Try it in the sandbox.