Exam 13: Audit of the Acquisition and Payment Cycle

arrow
  • Select Tags
search iconSearch Question
  • Select Tags

One of the ways to prevent the use of fictitious vendors to steal company funds is by

Free
(Multiple Choice)
4.9/5
(39)
Correct Answer:
Verified

D

What are the important controls relating to cash disbursements?

Free
(Essay)
4.8/5
(38)
Correct Answer:
Verified

The important controls relating to cash disbursements are: 1)The signing of cheques (or authorization of payment release)by an individual with proper authority;
2)Separation of responsibilities for approving the payments and performing the accounts payable function;
3)Careful examination of the supporting documents by the cheque signer at the time the cheque is signed;and
4)Use of a password (preferably two different passwords by two people)before electronic payments are released.

The internal control that requires receiving reports to be prenumbered and accounted for satisfies the objective of

Free
(Multiple Choice)
4.9/5
(38)
Correct Answer:
Verified

C

When processing and recording cash disbursements,it is important to have a method of cancelling the supporting documents to prevent their reuse as support for another cheque at a later time.A common method is to

(Multiple Choice)
4.9/5
(32)

The major balance sheet account in the acquisition and payment cycle is

(Multiple Choice)
4.9/5
(48)

An important control in the accounts payable and information systems departments is to require that those personnel who record acquisitions do not have access to

(Multiple Choice)
4.8/5
(39)

The control objective associated with selecting a sample of receiving reports and tracing them to the perpetual inventory records is

(Multiple Choice)
4.7/5
(39)

What are the two factors that the audit strategy depends on for the acquisition and payment cycle?

(Essay)
4.9/5
(46)

What are the risks of error or fraud in the acquisition and payment cycle?

(Essay)
4.8/5
(44)

Which of the following controls help to ensure that the receipt of raw materials for inventory is recorded in the correct period?

(Multiple Choice)
4.8/5
(41)

Many companies have inventory that is easy to steal and is readily marketable.Which of the following controls helps to prevent theft and misuse of inventory?

(Multiple Choice)
5.0/5
(41)

Which of the following situations would indicate increased inherent risk in the accounts payable and acquisition cycle?

(Multiple Choice)
4.8/5
(39)

Auditor confirmation of accounts payable balances at the balance sheet date may be unnecessary because

(Multiple Choice)
4.8/5
(29)

One of the ways to prevent the use of fictitious vendors to steal company funds is to

(Multiple Choice)
4.7/5
(48)

The statement that items on the accounts payable register must be supported by a completed voucher package containing a services purchase order and evidence the service was provided is a specific example of which control objective?

(Multiple Choice)
4.9/5
(36)

The tests of details of balances procedure for manufacturing equipment that requires the auditor to examine vendors' invoices of closely related accounts (such as repairs and maintenance)to uncover items that should be manufacturing equipment would satisfy the audit objective of

(Multiple Choice)
4.9/5
(43)

When an acquisition is on an FOB (freight on board)origin basis,the inventory and related accounts payable must be recorded in the current period if the goods were

(Multiple Choice)
4.8/5
(31)

Segregation of duties has an important role in providing for good quality internal controls.Which of the following segregation of duties improve controls over the inventory and distribution cycle?

(Multiple Choice)
4.7/5
(37)

A)Describe each of the four business functions that comprise the acquisition and payment cycle.B)Describe the key documents used in processing purchase orders for the acquisitions and payment cycle.C)Discuss the key documents and records used in recognizing the liability function in the acquisitions and payment cycle.

(Essay)
4.8/5
(35)

The internal control that requires an "independent verification of calculations and amounts" satisfies the objective of

(Multiple Choice)
4.9/5
(33)
Showing 1 - 20 of 78
close modal

Filters

  • Essay(0)
  • Multiple Choice(0)
  • Short Answer(0)
  • True False(0)
  • Matching(0)