Question 1

Because of time delays between receiving inventory and making the journal entry

Accepted Answer

A)  liabilities are usually understated 
B)  liabilities are usually overstated 
C)  liabilities are usually correctly stated 
D)  none of the above 
A)  liabilities are usually understated 
B)  liabilities are usually overstated 
C)  liabilities are usually correctly stated 
D)  none of the above

Question 2

The document which will close the open purchase requisition file is the

Accepted Answer

A)  purchase order 
B)  vendor invoice 
C)  receiving report 
D)  none of the above 
A)  purchase order 
B)  vendor invoice 
C)  receiving report 
D)  none of the above

Question 3

The receiving department is not responsible to

Accepted Answer

A)  inspect shipments received 
B)  count items received from vendors 
C)  order goods from vendors 
D)  safeguard goods until they are transferred to the warehouse 
A)  inspect shipments received 
B)  count items received from vendors 
C)  order goods from vendors 
D)  safeguard goods until they are transferred to the warehouse

Question 4

Which department is responsible for approving changes in pay rates for employees?

Accepted Answer

A)  payroll 
B)  treasurer 
C)  personnel 
D)  cash disbursements 
A)  payroll 
B)  treasurer 
C)  personnel 
D)  cash disbursements

Question 5

Which internally generated document should be compared to the supplier's invoice to verify the quantity being billed for?

Accepted Answer

The answer of Which internally generated document should be compared...

Question 6

What is a blind copy of a purchase order and what is its purpose?

Accepted Answer

A blind copy of the PO contains no quant

Question 7

The purpose of the receiving report is to

Accepted Answer

A)  order goods from vendors 
B)  record receipt of goods from vendors 
C)  authorize the purchasing department to order goods 
D)  bill for goods delivered 
A)  order goods from vendors 
B)  record receipt of goods from vendors 
C)  authorize the purchasing department to order goods 
D)  bill for goods delivered

Question 8

Inventory control should be located in the warehouse.

Accepted Answer

A) True 
 B)False

Question 9

List specific jobs that should be segregated in the purchases processing system.

Accepted Answer

inventory control fr

Question 10

What function or department typically initiates a purchase in a merchandising business?

Accepted Answer

Inventory control determines t

Question 11

What are the key authorization issues in purchasing and cash disbursements?

Accepted Answer

Inventory control monitors inventory and

Question 12

When a copy of the receiving report arrives in the purchasing department,it is used to

Accepted Answer

A)  adjust perpetual inventory records 
B)  record the physical transfer of inventory from receiving to the warehouse 
C)  analyze the receiving department's process 
D)  recognize the purchase order as closed 
A)  adjust perpetual inventory records 
B)  record the physical transfer of inventory from receiving to the warehouse 
C)  analyze the receiving department's process 
D)  recognize the purchase order as closed

Question 13

Why should employees clocking on and off the job be supervised.

Accepted Answer

A form of payroll fraud involv

Question 14

The inventory procurement process begins with the purchasing clerk preparing a purchase order.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following situations represents a serious control weakness?

Accepted Answer

A)  Timekeeping is independent of the payroll department. 
B)  Paychecks are distributed by the employees immediate supervisor. 
C)  Time cards are reconciled with job tickets. 
D)  Personnel is responsible for updating employee records, including creation of records for new hires. 
A)  Timekeeping is independent of the payroll department. 
B)  Paychecks are distributed by the employees immediate supervisor. 
C)  Time cards are reconciled with job tickets. 
D)  Personnel is responsible for updating employee records, including creation of records for new hires.

Question 16

A supplier invoice

Accepted Answer

A)  is included with the goods 
B)  shows what was ordered even if all was not shipped 
C)  is sent by vendor to accounts payable 
D)  none of the above 
A)  is included with the goods 
B)  shows what was ordered even if all was not shipped 
C)  is sent by vendor to accounts payable 
D)  none of the above

Question 17

When goods are received,the receiving clerk sends copies of the receiving report to the inventory control clerk and the AP clerk.

Accepted Answer

A) True 
 B)False

Question 18

Usually the open voucher payable file is organized by

Accepted Answer

A)  vendor 
B)  payment due date 
C)  purchase order number 
D)  transaction date 
A)  vendor 
B)  payment due date 
C)  purchase order number 
D)  transaction date

Question 19

Payroll processing can be automated easily because accounting for payroll is very simple.

Accepted Answer

A) True 
 B)False

Question 20

What is the purpose of a receiving report?

Accepted Answer

Upon completion of the physical count an

Because of time delays between receiving inventory and making the journal entry

The document which will close the open purchase requisition file is the

The receiving department is not responsible to

Which department is responsible for approving changes in pay rates for employees?

Which internally generated document should be compared to the supplier's invoice to verify the quantity being billed for?

What is a blind copy of a purchase order and what is its purpose?

The purpose of the receiving report is to

Inventory control should be located in the warehouse.

List specific jobs that should be segregated in the purchases processing system.

What function or department typically initiates a purchase in a merchandising business?

What are the key authorization issues in purchasing and cash disbursements?

When a copy of the receiving report arrives in the purchasing department,it is used to

Why should employees clocking on and off the job be supervised.

The inventory procurement process begins with the purchasing clerk preparing a purchase order.

Which of the following situations represents a serious control weakness?

A supplier invoice

When goods are received,the receiving clerk sends copies of the receiving report to the inventory control clerk and the AP clerk.

Usually the open voucher payable file is organized by

Payroll processing can be automated easily because accounting for payroll is very simple.

What is the purpose of a receiving report?

Auditing and Internal Control

Auditing IT Governance Controls

Security Part I: Auditing Operating Systems and Networks

IT Security Part II: Auditing Database Systems

Systems Development and Program Change Activities

Overview of Transaction Processing and Financial Reporting Systems

Computer-Assisted Audit Tools and Techniques

Data Structures and CAATTs for Data Extraction

Auditing the Revenue Cycle

Business Ethics, Fraud, and Fraud Detection

Enterprise Resource Planning Systems

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Exam 10: Auditing the Expenditure Cycle

Because of time delays between receiving inventory and making the journal entry

The document which will close the open purchase requisition file is the

The receiving department is not responsible to

Which department is responsible for approving changes in pay rates for employees?

Which internally generated document should be compared to the supplier's invoice to verify the quantity being billed for?

What is a blind copy of a purchase order and what is its purpose?

The purpose of the receiving report is to

Inventory control should be located in the warehouse.

List specific jobs that should be segregated in the purchases processing system.

What function or department typically initiates a purchase in a merchandising business?

What are the key authorization issues in purchasing and cash disbursements?

When a copy of the receiving report arrives in the purchasing department,it is used to

Why should employees clocking on and off the job be supervised.

The inventory procurement process begins with the purchasing clerk preparing a purchase order.

Which of the following situations represents a serious control weakness?

A supplier invoice

When goods are received,the receiving clerk sends copies of the receiving report to the inventory control clerk and the AP clerk.

Usually the open voucher payable file is organized by

Payroll processing can be automated easily because accounting for payroll is very simple.

What is the purpose of a receiving report?

Auditing and Internal Control

Auditing IT Governance Controls

Security Part I: Auditing Operating Systems and Networks

IT Security Part II: Auditing Database Systems

Systems Development and Program Change Activities

Overview of Transaction Processing and Financial Reporting Systems

Computer-Assisted Audit Tools and Techniques

Data Structures and CAATTs for Data Extraction

Auditing the Revenue Cycle

Business Ethics, Fraud, and Fraud Detection

Enterprise Resource Planning Systems

Filters