Exam 9: Expenditures Processes and Controlspurchases

A tear-off part of a check that has a simple explanation of the reasons for the payment is called:

One of the most critical controls to prevent theft of inventory purchased is to:

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:

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

The careful oversight of cash balances, forecasted cash payments, and forecasted cash receipts to insure that adequate cash balances exist to meet obligations is called:

The date that is the end of the accounting period is referred to as the:

Each category of processes in the typical purchasing system would include controls and risks.For each of the categories, the goal of the internal controls system is to reduce specific types of business risks.Which of the following is not one of those risks?

In order to help safeguard the availability in an electronic business environment, a company should implement controls such as business continuity planning, backup data and systems, in order to reduce the risk of:

It is important that documentation support or agree with an invoice before payment is approved and a check is issued.Which documents should be matched to make sure that the invoice received relates to a valid order that was placed and that the goods were received?

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

The textbook referred to the three primary categories of processes in the typical purchasing system.Which of the following is not one of those categories?

This type of system matching takes place without invoices.The receipt of goods is carefully evaluated and, if it matches the purchase order, settlement of the obligation occurs through the system.

In a system of proper internal controls, the same employee should not be allowed to:

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

The document that identifies the items being returned, along with the relevant information regarding the vendor, quantity and price, is called:

Internal control activities within the purchasing process, identified as adequate records and documents, would include which of the following?

The policies and procedures that employees follow when completing the purchase of goods or materials, capturing vendor data and purchase quantities, and routing the resulting purchasing documents to the proper departments within the company are called:

A computer software technique in which the computer software matches a Purchase Order to its related receiving report and invoice is called a(n):

Which department maintains copies of purchase orders and receiving reports so that the documents can be compared before the accounting records are updated?

Common expenditure processes would include all of the following, except: