Question 1

Describe an internal control procedure that would prevent payment of a invoice for goods that were never delivered.

Accepted Answer

Accounts payable sho

Question 2

What is(are)the purpose(s)of maintaining a valid vendor file?

Accepted Answer

Inventories should only be acquired from

Question 3

The purpose of the purchase requisition 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 4

Of the following duties,it is most important to separate

Accepted Answer

A)  warehouse from stores 
B)  warehouse from inventory control 
C)  accounts payable and accounts receivable 
D)  purchasing and accounts receivable 
A)  warehouse from stores 
B)  warehouse from inventory control 
C)  accounts payable and accounts receivable 
D)  purchasing and accounts receivable

Question 5

Why should the employee's supervisor not distribute paychecks?

Accepted Answer

A form of payroll fraud involv

Question 6

Describe an internal control procedure that would prevent a supervisor from stealing the unclaimed paychecks of employees who have been terminated.

Accepted Answer

This type of fraud can be reduced or eli

Question 7

The personnel department authorizes changes in employee pay rates.

Accepted Answer

A) True 
 B)False

Question 8

When a cash disbursement in payment of an accounts payable is recorded

Accepted Answer

A)  the liability account is increased 
B)  the income statement is changed 
C)  the cash account is unchanged 
D)  the liability account is decreased 
A)  the liability account is increased 
B)  the income statement is changed 
C)  the cash account is unchanged 
D)  the liability account is decreased

Question 9

Why do companies devote resources to a purchasing department? Could not individual departments make their own purchases more efficiently?

Accepted Answer

The purchasing function is extremely imp

Question 10

The accounts payable department reconciles the accounts payable subsidiary ledger to the control account.

Accepted Answer

A) True 
 B)False

Question 11

What internal accounting control(s)would be the most effective in preventing a storekeeper from taking inventory home at night? When shortages become apparent,he claims the goods were never received.

Accepted Answer

receiving records it

Question 12

Why does the payroll process lend itself to batch processing?

Accepted Answer

Payroll lends itself to batch computeriz

Question 13

In the expenditure cycle,general ledger does not

Accepted Answer

A)  post the journal voucher from the accounts payable department 
B)  post the account summary from inventory control 
C)  post the journal voucher from the purchasing department 
D)  reconcile the inventory control account with the inventory subsidiary summary 
A)  post the journal voucher from the accounts payable department 
B)  post the account summary from inventory control 
C)  post the journal voucher from the purchasing department 
D)  reconcile the inventory control account with the inventory subsidiary summary

Question 14

What type of error or fraud might happen if suppliers' invoices are not compared to purchase orders or to receiving reports before payment?

Accepted Answer

payment at higher th

Question 15

The paymaster distributes paychecks to work center supervisors.

Accepted Answer

A) True 
 B)False

Question 16

What are the key segregation of duties issues in purchasing and cash disbursements?

Accepted Answer

The key segregation of duties issue in p

Question 17

To improve internal control,paychecks should be distributed by the employee's supervisor.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is not correct?

Accepted Answer

A)  the voucher system is used to improve control over cash disbursements 
B)  the sum of the paid vouchers represents the voucher payable liability of the firm 
C)  the voucher system permits the firm to consolidate payments of several invoices on one voucher 
D)  many firms replace accounts payable with a voucher payable system 
A)  the voucher system is used to improve control over cash disbursements 
B)  the sum of the paid vouchers represents the voucher payable liability of the firm 
C)  the voucher system permits the firm to consolidate payments of several invoices on one voucher 
D)  many firms replace accounts payable with a voucher payable system

Question 19

Payroll uses time card data to do all of the following except

Accepted Answer

A)  prepare the payroll register 
B)  update employee payroll records 
C)  prepare the labor distribution summary 
D)  prepare paychecks 
A)  prepare the payroll register 
B)  update employee payroll records 
C)  prepare the labor distribution summary 
D)  prepare paychecks

Question 20

In a manufacturing firm,employees use time cards and job tickets.Which of the following statements is not correct?

Accepted Answer

A)  Job tickets are prepared by employees for each job worked on, so an employee may have more that one job ticket on a given day. 
B)  An individual employee will have only one time card. 
C)  The time reported on job tickets should reconcile with the time reported on time cards. 
D)  Paychecks should be prepared from the job tickets. 
A)  Job tickets are prepared by employees for each job worked on, so an employee may have more that one job ticket on a given day. 
B)  An individual employee will have only one time card. 
C)  The time reported on job tickets should reconcile with the time reported on time cards. 
D)  Paychecks should be prepared from the job tickets.

Describe an internal control procedure that would prevent payment of a invoice for goods that were never delivered.

What is(are)the purpose(s)of maintaining a valid vendor file?

The purpose of the purchase requisition is to

Of the following duties,it is most important to separate

Why should the employee's supervisor not distribute paychecks?

Describe an internal control procedure that would prevent a supervisor from stealing the unclaimed paychecks of employees who have been terminated.

The personnel department authorizes changes in employee pay rates.

When a cash disbursement in payment of an accounts payable is recorded

Why do companies devote resources to a purchasing department? Could not individual departments make their own purchases more efficiently?

The accounts payable department reconciles the accounts payable subsidiary ledger to the control account.

What internal accounting control(s)would be the most effective in preventing a storekeeper from taking inventory home at night? When shortages become apparent,he claims the goods were never received.

Why does the payroll process lend itself to batch processing?

In the expenditure cycle,general ledger does not

What type of error or fraud might happen if suppliers' invoices are not compared to purchase orders or to receiving reports before payment?

The paymaster distributes paychecks to work center supervisors.

What are the key segregation of duties issues in purchasing and cash disbursements?

To improve internal control,paychecks should be distributed by the employee's supervisor.

Which of the following statements is not correct?

Payroll uses time card data to do all of the following except

In a manufacturing firm,employees use time cards and job tickets.Which of the following statements is not correct?

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

Exam 10: Auditing the Expenditure Cycle

Describe an internal control procedure that would prevent payment of a invoice for goods that were never delivered.

What is(are)the purpose(s)of maintaining a valid vendor file?

The purpose of the purchase requisition is to

Of the following duties,it is most important to separate

Why should the employee's supervisor not distribute paychecks?

Describe an internal control procedure that would prevent a supervisor from stealing the unclaimed paychecks of employees who have been terminated.

The personnel department authorizes changes in employee pay rates.

When a cash disbursement in payment of an accounts payable is recorded

Why do companies devote resources to a purchasing department? Could not individual departments make their own purchases more efficiently?

The accounts payable department reconciles the accounts payable subsidiary ledger to the control account.

What internal accounting control(s)would be the most effective in preventing a storekeeper from taking inventory home at night? When shortages become apparent,he claims the goods were never received.

Why does the payroll process lend itself to batch processing?

In the expenditure cycle,general ledger does not

What type of error or fraud might happen if suppliers' invoices are not compared to purchase orders or to receiving reports before payment?

The paymaster distributes paychecks to work center supervisors.

What are the key segregation of duties issues in purchasing and cash disbursements?

To improve internal control,paychecks should be distributed by the employee's supervisor.

Which of the following statements is not correct?

Payroll uses time card data to do all of the following except

In a manufacturing firm,employees use time cards and job tickets.Which of the following statements is not correct?

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