Question 1

What general ledger journal entries are triggered by the purchases system? From which departments do these journal entries arise?

Accepted Answer

The answer of What general ledger journal entries are triggered...

Question 2

How does the procedure for determining inventory requirements differ between a basic batch processing system and batch processing with real-time data input of sales and receipts of inventory? What about for the procedures used by the receiving department?

Accepted Answer

A system which employs real-time data en

Question 3

When a trading partner agreement is in place,the traditional three way match may be eliminated.

Accepted Answer

A) True 
 B)False

Question 4

The cash disbursement clerk performs all of the following tasks except

Accepted Answer

A)  reviews the supporting documents for completeness and accuracy 
B)  prepares checks 
C)  signs checks 
D)  marks the supporting documents paid 
A)  reviews the supporting documents for completeness and accuracy 
B)  prepares checks 
C)  signs checks 
D)  marks the supporting documents paid

Question 5

An important reconciliation in the payroll system is

Accepted Answer

A)  general ledger compares the labor distribution summary from cost accounting to the disbursement voucher from accounts payable 
B)  personnel compares the number of employees authorized to receive a paycheck to the number of paychecks prepared 
C)  production compares the number of hours reported on job tickets to the number of hours reported on time cards 
D)  payroll compares the labor distribution summary to the hours reported on time cards 
A)  general ledger compares the labor distribution summary from cost accounting to the disbursement voucher from accounts payable 
B)  personnel compares the number of employees authorized to receive a paycheck to the number of paychecks prepared 
C)  production compares the number of hours reported on job tickets to the number of hours reported on time cards 
D)  payroll compares the labor distribution summary to the hours reported on time cards

Question 6

How does a voucher payable system work? What documents are reconciled? Who prepares the voucher? How is the A/P balance determined? How does the voucher payable system improve control over cash?

Accepted Answer

In place of a standard accounts payable

Question 7

Where is access control exercised in the purchasing/cash disbursement functions?

Accepted Answer

physical control of inventory

Question 8

Accounting records that provide the audit trail for payroll include all of the following except

Accepted Answer

A)  time cards 
B)  job tickets 
C)  payroll register 
D)  accounts payable register 
A)  time cards 
B)  job tickets 
C)  payroll register 
D)  accounts payable register

Question 9

In the payroll subsystem,which function should distribute paychecks?

Accepted Answer

A)  personnel 
B)  timekeeping 
C)  paymaster 
D)  payroll 
A)  personnel 
B)  timekeeping 
C)  paymaster 
D)  payroll

Question 10

The payroll department is responsible for both updating the employee records and writing paychecks.

Accepted Answer

A) True 
 B)False

Question 11

The reason that a blind copy of the purchase order is sent to receiving is to

Accepted Answer

A)  inform receiving when a shipment is due 
B)  force a count of the items delivered 
C)  inform receiving of the type, quantity, and price of items to be delivered 
D)  require that the goods delivered are inspected 
A)  inform receiving when a shipment is due 
B)  force a count of the items delivered 
C)  inform receiving of the type, quantity, and price of items to be delivered 
D)  require that the goods delivered are inspected

Question 12

The Soap Manufacturing Company has three employees who work in the warehouse.All of the warehouse workers are authorized to order inventory when it falls below the reorder level.The workers complete a purchase order and mail it to the supplier of their choice.The inventory is delivered directly to the warehouse.The workers send a memo to accounts payable reporting the receipt of inventory.
Accounts payable compares the warehouse memo to the supplier's invoice.Accounts payable prepares a check which the treasurer signs.
Describe at least five needed internal control improvements.

Accepted Answer

The warehouse workers should prepare a p

Question 13

Time cards are used by cost accounting to allocate direct labor charges to work in process.

Accepted Answer

A) True 
 B)False

Question 14

The receiving report is prepared by the vendor to provide evidence that the purchase order was received.

Accepted Answer

A) True 
 B)False

Question 15

Goods received are inspected and counted to

Accepted Answer

A)  determine that the goods are in good condition 
B)  determine the quantity of goods received 
C)  preclude payment for goods not received or received in poor condition 
D)  all of the above 
A)  determine that the goods are in good condition 
B)  determine the quantity of goods received 
C)  preclude payment for goods not received or received in poor condition 
D)  all of the above

Question 16

Firms that wish to improve control over cash disbursements use a voucher system.

Accepted Answer

A) True 
 B)False

Question 17

In a manufacturing firm,employees typically fill out two different documents regarding their time worked.What are they? Why are there two?

Accepted Answer

The two documents are the time card and

Question 18

In a real-time processing system with a high number of transactions,the best and most practical control over cash disbursements is to have

Accepted Answer

A)  all checks manually signed by the treasurer 
B)  all checks signed by check-signing equipment 
C)  checks over a certain dollar amount manually signed by the treasurer 
D)  checks over a certain dollar amount manually signed by the cash disbursements clerk 
A)  all checks manually signed by the treasurer 
B)  all checks signed by check-signing equipment 
C)  checks over a certain dollar amount manually signed by the treasurer 
D)  checks over a certain dollar amount manually signed by the cash disbursements clerk

Question 19

Because a time clock is used,no supervision is required when employees enter and leave the work place.

Accepted Answer

A) True 
 B)False

Question 20

Ideally,payroll checks are written on a special bank account used only for payroll.

Accepted Answer

A) True 
 B)False

What general ledger journal entries are triggered by the purchases system? From which departments do these journal entries arise?

How does the procedure for determining inventory requirements differ between a basic batch processing system and batch processing with real-time data input of sales and receipts of inventory? What about for the procedures used by the receiving department?

When a trading partner agreement is in place,the traditional three way match may be eliminated.

The cash disbursement clerk performs all of the following tasks except

An important reconciliation in the payroll system is

How does a voucher payable system work? What documents are reconciled? Who prepares the voucher? How is the A/P balance determined? How does the voucher payable system improve control over cash?

Where is access control exercised in the purchasing/cash disbursement functions?

Accounting records that provide the audit trail for payroll include all of the following except

In the payroll subsystem,which function should distribute paychecks?

The payroll department is responsible for both updating the employee records and writing paychecks.

The reason that a blind copy of the purchase order is sent to receiving is to

Time cards are used by cost accounting to allocate direct labor charges to work in process.

The receiving report is prepared by the vendor to provide evidence that the purchase order was received.

Goods received are inspected and counted to

Firms that wish to improve control over cash disbursements use a voucher system.

In a manufacturing firm,employees typically fill out two different documents regarding their time worked.What are they? Why are there two?

In a real-time processing system with a high number of transactions,the best and most practical control over cash disbursements is to have

Because a time clock is used,no supervision is required when employees enter and leave the work place.

Ideally,payroll checks are written on a special bank account used only for payroll.

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

What general ledger journal entries are triggered by the purchases system? From which departments do these journal entries arise?

How does the procedure for determining inventory requirements differ between a basic batch processing system and batch processing with real-time data input of sales and receipts of inventory? What about for the procedures used by the receiving department?

When a trading partner agreement is in place,the traditional three way match may be eliminated.

The cash disbursement clerk performs all of the following tasks except

An important reconciliation in the payroll system is

How does a voucher payable system work? What documents are reconciled? Who prepares the voucher? How is the A/P balance determined? How does the voucher payable system improve control over cash?

Where is access control exercised in the purchasing/cash disbursement functions?

Accounting records that provide the audit trail for payroll include all of the following except

In the payroll subsystem,which function should distribute paychecks?

The payroll department is responsible for both updating the employee records and writing paychecks.

The reason that a blind copy of the purchase order is sent to receiving is to

Time cards are used by cost accounting to allocate direct labor charges to work in process.

The receiving report is prepared by the vendor to provide evidence that the purchase order was received.

Goods received are inspected and counted to

Firms that wish to improve control over cash disbursements use a voucher system.

In a manufacturing firm,employees typically fill out two different documents regarding their time worked.What are they? Why are there two?

In a real-time processing system with a high number of transactions,the best and most practical control over cash disbursements is to have

Because a time clock is used,no supervision is required when employees enter and leave the work place.

Ideally,payroll checks are written on a special bank account used only for payroll.

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