Question 1

Which of the following controls is not normally performed in the accounts payable department?

Accepted Answer

A) The vendor's invoice is matched with the related receiving report. 
B) Vendor invoices are approved for payment. 
C) Asset and expense accounts to be recorded are assigned. 
D) Unused purchase orders and receiving reports are accounted for. 
A) The vendor's invoice is matched with the related receiving report. 
B) Vendor invoices are approved for payment. 
C) Asset and expense accounts to be recorded are assigned. 
D) Unused purchase orders and receiving reports are accounted for.

Question 2

The internal control process of requiring physical controls in the warehouse and receiving areas, in order to limit access to inventory items, will help to minimize the risk of:

Accepted Answer

A) Incorrect posting 
B) Omitted purchases 
C) Invalid vendors 
D) Stolen goods 
A) Incorrect posting 
B) Omitted purchases 
C) Invalid vendors 
D) Stolen goods

Question 3

Computer logs should be maintained in order to have a complete record of who used the system and the histories of that use.This computer log would allow monitoring and identification of unauthorized accesses or uses.

Accepted Answer

A) True 
 B)False

Question 4

E-business and EDI have much different advantages and risks to the vendor than what exists for the customer.

Accepted Answer

A) True 
 B)False

Question 5

When goods are received at the end of the accounting period, and the invoice is not received until after the start of the following period, a problem may arise as to when to record the liability.This is referred to as an):

Accepted Answer

A) Obligation referral 
B) Cutoff issue 
C) Liability deferral 
D) Channel stuffing 
A) Obligation referral 
B) Cutoff issue 
C) Liability deferral 
D) Channel stuffing

Question 6

There are four primary functions of corporate governance.Which of the following is NOT one of those functions?

Accepted Answer

A) Availability 
B) Management Oversight 
C) Internal Controls and Compliance 
D) Financial Stewardship
TEST BANK - CHAPTER 9 - TRUE / FALSE 
A) Availability 
B) Management Oversight 
C) Internal Controls and Compliance 
D) Financial Stewardship
TEST BANK - CHAPTER 9 - TRUE / FALSE

Question 7

The use of a blind purchase order forces the receiving clerk to perform an independent check of the quantity and quality of the delivery.

Accepted Answer

A) True 
 B)False

Question 8

Designated members of management should be given the responsibility for authorizing the actual payments and sign their signatures on the face of the check.

Accepted Answer

A) True 
 B)False

Which of the following controls is not normally performed in the accounts payable department?

The internal control process of requiring physical controls in the warehouse and receiving areas, in order to limit access to inventory items, will help to minimize the risk of:

Computer logs should be maintained in order to have a complete record of who used the system and the histories of that use.This computer log would allow monitoring and identification of unauthorized accesses or uses.

E-business and EDI have much different advantages and risks to the vendor than what exists for the customer.

When goods are received at the end of the accounting period, and the invoice is not received until after the start of the following period, a problem may arise as to when to record the liability.This is referred to as an):

There are four primary functions of corporate governance.Which of the following is NOT one of those functions?

The use of a blind purchase order forces the receiving clerk to perform an independent check of the quantity and quality of the delivery.

Designated members of management should be given the responsibility for authorizing the actual payments and sign their signatures on the face of the check.

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

Which of the following controls is not normally performed in the accounts payable department?

The internal control process of requiring physical controls in the warehouse and receiving areas, in order to limit access to inventory items, will help to minimize the risk of:

Computer logs should be maintained in order to have a complete record of who used the system and the histories of that use.This computer log would allow monitoring and identification of unauthorized accesses or uses.

E-business and EDI have much different advantages and risks to the vendor than what exists for the customer.

When goods are received at the end of the accounting period, and the invoice is not received until after the start of the following period, a problem may arise as to when to record the liability.This is referred to as an):

There are four primary functions of corporate governance.Which of the following is NOT one of those functions?

The use of a blind purchase order forces the receiving clerk to perform an independent check of the quantity and quality of the delivery.

Designated members of management should be given the responsibility for authorizing the actual payments and sign their signatures on the face of the check.

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