Exam 9: Procurement and Human Resources Business Processes

When goods arrive at a company's location,what are the ways a receiving report (goods receipt document)can be prepared in SAP ERP's procurement business process?

The eight documents in the SAP ERP Materials Management module may be processed "on-line."

Risk ________ for payroll,procurement,and customer order management business processes is required for compliance with Sarbanes-Oxley.

Explain the difference in a voucher system between recording invoices when they are approved for payment versus recording invoices when paid.

The ERP master records that has a hierarchical structure is the

Which one of the following represents a weakness in internal control regarding the human resources area?

In most states,unemployment compensation laws provide for taxes only on ________.

Which one of the following identifies the necessary information to maintain a built-up voucher system?

The Materials Management module of ERP maintains vendor master data.Users in different departments can update these records as necessary.There are several categories of information maintained in vendor master records.Which category of data below is not maintained in the vendor master records?

Employers engaged in interstate commerce are required by law to pay overtime at a minimum of one and one-half times the regular rate for hours worked in excess of 40 per week.The law that requires this is called the

Various payroll forms and reports must be submitted to federal and state entities by certain deadlines.The federal form which is not due on or before January 31 of each year is the

The specific component of ERP which allows a user to check goods movement and manage inventory stocks is the

The following ten paragraphs describe control weaknesses in customer order and account management business processes.Listed below are ten controls that may help regulate the weaknesses: A.Separation of payroll and personnel departments B.Independent paymaster to distribute paychecks C.Imprest payroll bank account D.Vendor selected by purchasing department E.Timekeeping department reconciles time cards to job time summaries F.Requisition form prepared by requestor G.Receiving report signed by stores H.Vendor list approved independent of purchasing I.Purchase order copy sent to accounts payable J.Receiving report copy sent to accounts payable Required: In the blank next to each number,list one capital letter representing the best control to address the system weakness.You will use each letter only once. 1.________ Rattlesnake Wire Company's purchasing manager selected his brother-in-law as a vendor and received a kickback for providing the business. 2.________ Blazing Saddles Corporation ordered goods that receiving personnel stole.Receiving prepared a receiving report and sent it to accounts payable.The company unknowingly paid for the stolen goods. 3.________ The production manager at Ghost Manufacturing Company told the payroll department he had hired a new employee.On payday,the paymaster could not find the employee and upon investigation,found that the employee did not exist. 4.________ Price Company's purchasing department ordered goods requested by the maintenance department by phone.When the goods arrived,the maintenance department claimed that the goods were of such poor quality they could not be used. 5.________ Connecticut Yankee Manufacturing Company ordered goods that were never received.The company,as a matter of standard policy,paid the invoice. 6.________ Southern Star Manufacturing Company's payroll department routinely distributed paychecks on payday.The payroll supervisor suddenly quit her job.On the next payday,the payroll department could not find employees to claim two paychecks. 7.________ Panhandle Products Company cannot easily identify vendors,and consistently selects vendors whose goods are overpriced and whose delivery schedules are too slow for Panhandle's needs. 8.________ Lone Star Production Company received goods that were never ordered.The company paid the invoice. 9.________ Half Moon Manufacturing Company's production manager is unsure that the second shift employees are working all hours reported on the job time tickets. 10.________ The internal auditor of Eastern Overboard Company prepares the bank reconciliation.He has difficulty managing the large number of outstanding checks at month-end in the bank reconciliation.Most of the outstanding checks are employee paychecks.

Payroll processing is one of the simplest procedures within a large organization.

A voucher payable system encompasses all expenditures,including trade accounts,payroll,and capital expenditures.

The imprest fund concept is primarily restricted to petty cash control.

Which of the following reviews and approves the purchase order prior to its further processing?

For the procurement business process,assessed risk is optional under Sarbanes-Oxley as long as a company's internal control system has been approved by external auditors.

The ________ ________ purchase order is issued to initiate a movement of goods between plants in a company.

Which of the following accesses the purchase order database during the processing of a purchase order?