Question 1

Within cash disbursements, all of the following should be true before a check is prepared, except that:

Accepted Answer

A) The purchase order, receiving report, and invoice have been matched. 
B) The purchased goods have been used. 
C) Sufficient cash is available. 
D) The invoice discount date or due date is imminent. 
A) The purchase order, receiving report, and invoice have been matched. 
B) The purchased goods have been used. 
C) Sufficient cash is available. 
D) The invoice discount date or due date is imminent.

Question 2

It is necessary for a company to maintain good control over their accounts payable and paying by the due date, for all of the following reasons, except:

Accepted Answer

A) Avoid late payment fees 
B) Maintain relationships with customers 
C) To take advantage of discounts for early payment 
D) To stay on good terms with its vendors 
A) Avoid late payment fees 
B) Maintain relationships with customers 
C) To take advantage of discounts for early payment 
D) To stay on good terms with its vendors

Question 3

Credit cards given to employees by the organization in order for the employees to make designated purchases are called:

Accepted Answer

A) Employee Debit Cards 
B) Organization Purchase Cards 
C) Expenditure Cards 
D) Procurement Cards 
A) Employee Debit Cards 
B) Organization Purchase Cards 
C) Expenditure Cards 
D) Procurement Cards

Question 4

When preparing the cash disbursement journals, it is important that the records have the actual date of cash disbursement, as is shown on the check.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following IT systems is designed to avoid the document matching process and is an "invoiceless" system?

Accepted Answer

A) Computer-based matching system 
B) Electronic data interchange 
C) Evaluated receipt settlement 
D) Microsoft Dynamics 
A) Computer-based matching system 
B) Electronic data interchange 
C) Evaluated receipt settlement 
D) Microsoft Dynamics

Question 6

Which of the following departments is not a part of the purchasing process?

Accepted Answer

A) Receiving 
B) Warehouse 
C) Cash Disbursements 
D) Accounts Payable 
A) Receiving 
B) Warehouse 
C) Cash Disbursements 
D) Accounts Payable

Question 7

The internal control process that requires the approval of a cash disbursement transaction to take place prior to the preparation of the check, will help to minimize the risk of:

Accepted Answer

A) Fictitious payments 
B) Invalid payments 
C) Timing issues 
D) Stolen cash 
A) Fictitious payments 
B) Invalid payments 
C) Timing issues 
D) Stolen cash

Question 8

The examination of the system to determine the adequacy of security measures and to identify security deficiencies is called:

Accepted Answer

A) Intrusion detection 
B) Penetration testing 
C) Vulnerability testing 
D) Integrity testing 
A) Intrusion detection 
B) Penetration testing 
C) Vulnerability testing 
D) Integrity testing

Question 9

Intentionally attempting to circumvent IT system access controls to determine whether there are weaknesses in any controls is called:

Accepted Answer

A) Penetration testing 
B) Intrusion detection 
C) Integrity testing 
D) Vulnerability testing 
A) Penetration testing 
B) Intrusion detection 
C) Integrity testing 
D) Vulnerability testing

Question 10

Personnel who work in the receiving area should complete all of the following processes, except:

Accepted Answer

A) Counting the goods received 
B) Inspecting goods received for damage 
C) Preparing a receiving report 
D) Preparing an invoice 
A) Counting the goods received 
B) Inspecting goods received for damage 
C) Preparing a receiving report 
D) Preparing an invoice

Question 11

The expenditure and return process is similar to the _______ process, except that goods and cash flow in the opposite direction.

Accepted Answer

A) Procurement 
B) Conversion 
C) Revenue 
D) Systems and control 
A) Procurement 
B) Conversion 
C) Revenue 
D) Systems and control

Question 12

Immediate preparation of receiving reports for all actual receipts of goods helps to minimize the risk of:

Accepted Answer

A) Timing issues 
B) Omitted transactions 
C) Invalid purchases 
D) All of the above 
A) Timing issues 
B) Omitted transactions 
C) Invalid purchases 
D) All of the above

Question 13

Even though a company has an obligation to pay for goods as soon as the goods are received, it is common to not record the actual liability until the invoice is received.

Accepted Answer

A) True 
 B)False

Question 14

The purchasing process starts when the purchase invoice is submitted by the vendor.

Accepted Answer

A) True 
 B)False

Question 15

The cash disbursement process must be designed to ensure that the company appropriately records all accounts payable transactions.

Accepted Answer

A) True 
 B)False

Question 16

This document, prepared by the purchasing department, for use by the receiving department, is copy of the purchase order that eliminates all data about the price and quantity of the items ordered.

Accepted Answer

A) Packing slip 
B) Blind purchase order 
C) Empty purchase order 
D) Receiving report 
A) Packing slip 
B) Blind purchase order 
C) Empty purchase order 
D) Receiving report

Question 17

Which of the following groups has an ethical obligation to establish the proper tone at the top, strong internal controls, and high ethical standards?

Accepted Answer

A) Stockholders 
B) Board of Directors and Management 
C) Employees 
D) Audit Committee 
A) Stockholders 
B) Board of Directors and Management 
C) Employees 
D) Audit Committee

Question 18

Independent reconciliation of the periodic inventory counts and the inventory ledger and the general ledger will help to assure that inventory is being properly accounted for.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following events would not constitute the start of the purchasing process?

Accepted Answer

A) A warehouse attendant notices a particularly low stock level. 
B) An operations manager becomes aware of additional quantities of material that will be needed to fulfill sales orders. 
C) An accountant detects potential shortages in documented inventory quantities. 
D) The purchasing manager receives a shipment of raw materials that she had ordered. 
A) A warehouse attendant notices a particularly low stock level. 
B) An operations manager becomes aware of additional quantities of material that will be needed to fulfill sales orders. 
C) An accountant detects potential shortages in documented inventory quantities. 
D) The purchasing manager receives a shipment of raw materials that she had ordered.

Question 20

This type of software alerts the organization to hacking or other unauthorized use of the system or network.

Accepted Answer

A) Penetration testing 
B) Intrusion detection 
C) Integrity testing 
D) Vulnerability testing 
A) Penetration testing 
B) Intrusion detection 
C) Integrity testing 
D) Vulnerability testing

Within cash disbursements, all of the following should be true before a check is prepared, except that:

It is necessary for a company to maintain good control over their accounts payable and paying by the due date, for all of the following reasons, except:

Credit cards given to employees by the organization in order for the employees to make designated purchases are called:

When preparing the cash disbursement journals, it is important that the records have the actual date of cash disbursement, as is shown on the check.

Which of the following IT systems is designed to avoid the document matching process and is an "invoiceless" system?

Which of the following departments is not a part of the purchasing process?

The internal control process that requires the approval of a cash disbursement transaction to take place prior to the preparation of the check, will help to minimize the risk of:

The examination of the system to determine the adequacy of security measures and to identify security deficiencies is called:

Intentionally attempting to circumvent IT system access controls to determine whether there are weaknesses in any controls is called:

Personnel who work in the receiving area should complete all of the following processes, except:

The expenditure and return process is similar to the _______ process, except that goods and cash flow in the opposite direction.

Immediate preparation of receiving reports for all actual receipts of goods helps to minimize the risk of:

Even though a company has an obligation to pay for goods as soon as the goods are received, it is common to not record the actual liability until the invoice is received.

The purchasing process starts when the purchase invoice is submitted by the vendor.

The cash disbursement process must be designed to ensure that the company appropriately records all accounts payable transactions.

This document, prepared by the purchasing department, for use by the receiving department, is copy of the purchase order that eliminates all data about the price and quantity of the items ordered.

Which of the following groups has an ethical obligation to establish the proper tone at the top, strong internal controls, and high ethical standards?

Independent reconciliation of the periodic inventory counts and the inventory ledger and the general ledger will help to assure that inventory is being properly accounted for.

Which of the following events would not constitute the start of the purchasing process?

This type of software alerts the organization to hacking or other unauthorized use of the system or network.

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Erp Systems

Auditing Information Technology Bases Processes

Revenue and Cash Collection Processes

Expenditures Processes and Controls Payroll and Fixed Assets

Conversion Processes and Controls

Administrative Processes and Controls

Data and Databases

Ecommerce and Ebusiness

Filters

Exam 9: Expenditures Processes and Controls - Purchases

Within cash disbursements, all of the following should be true before a check is prepared, except that:

It is necessary for a company to maintain good control over their accounts payable and paying by the due date, for all of the following reasons, except:

Credit cards given to employees by the organization in order for the employees to make designated purchases are called:

When preparing the cash disbursement journals, it is important that the records have the actual date of cash disbursement, as is shown on the check.

Which of the following IT systems is designed to avoid the document matching process and is an "invoiceless" system?

Which of the following departments is not a part of the purchasing process?

The internal control process that requires the approval of a cash disbursement transaction to take place prior to the preparation of the check, will help to minimize the risk of:

The examination of the system to determine the adequacy of security measures and to identify security deficiencies is called:

Intentionally attempting to circumvent IT system access controls to determine whether there are weaknesses in any controls is called:

Personnel who work in the receiving area should complete all of the following processes, except:

The expenditure and return process is similar to the _______ process, except that goods and cash flow in the opposite direction.

Immediate preparation of receiving reports for all actual receipts of goods helps to minimize the risk of:

Even though a company has an obligation to pay for goods as soon as the goods are received, it is common to not record the actual liability until the invoice is received.

The purchasing process starts when the purchase invoice is submitted by the vendor.

The cash disbursement process must be designed to ensure that the company appropriately records all accounts payable transactions.

This document, prepared by the purchasing department, for use by the receiving department, is copy of the purchase order that eliminates all data about the price and quantity of the items ordered.

Which of the following groups has an ethical obligation to establish the proper tone at the top, strong internal controls, and high ethical standards?

Independent reconciliation of the periodic inventory counts and the inventory ledger and the general ledger will help to assure that inventory is being properly accounted for.

Which of the following events would not constitute the start of the purchasing process?

This type of software alerts the organization to hacking or other unauthorized use of the system or network.

Introduction to AIS

Foundational Concepts of the AIS

Fraud, Ethics, and Internal Control

Internal Controls and Risks in IT Systems

IT Governance

Erp Systems

Auditing Information Technology Bases Processes

Revenue and Cash Collection Processes

Expenditures Processes and Controls Payroll and Fixed Assets

Conversion Processes and Controls

Administrative Processes and Controls

Data and Databases

Ecommerce and Ebusiness

Filters