Question 1

Commercial accounting systems have fully integrated modules. The word "integrated" means that

Accepted Answer

A)  segregation of duties is not possible 
B)  transfer of information among modules occurs automatically 
C)  batch processing is not an option 
D)  separate entries are made in the general ledger accounts and the subsidiary ledgers 
A)  segregation of duties is not possible 
B)  transfer of information among modules occurs automatically 
C)  batch processing is not an option 
D)  separate entries are made in the general ledger accounts and the subsidiary ledgers

Question 2

A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger. Describe a specific internal control procedure that would prevent this fraud.

Accepted Answer

segregation of duties; do not

Question 3

What role does each of the following departments play in the sales order processing subsystem: sales, credit, and shipping? Be complete.

Accepted Answer

The sales department receives the order

Question 4

The customer open order file is used to

Accepted Answer

A)  respond to customer queries 
B)  fill the customer order 
C)  ship the customer order 
D)  authorize customer credit 
A)  respond to customer queries 
B)  fill the customer order 
C)  ship the customer order 
D)  authorize customer credit

Question 5

Which department is least likely to be involved in the revenue cycle?

Accepted Answer

A)  credit 
B)  accounts payable 
C)  billing 
D)  shipping 
A)  credit 
B)  accounts payable 
C)  billing 
D)  shipping

Question 6

The revenue cycle utilizes all of the following files except

Accepted Answer

A)  credit memo file 
B)  sales history file 
C)  shipping report file 
D)  cost data reference file 
A)  credit memo file 
B)  sales history file 
C)  shipping report file 
D)  cost data reference file

Question 7

When customer payments are received, the mailroom clerk sends the checks to the cash receipts clerk and the remittance advices to the AR clerk.

Accepted Answer

A) True 
 B)False

Question 8

Which journal is not used in the revenue cycle?

Accepted Answer

A)  cash receipts journal 
B)  sales journal 
C)  purchases journal 
D)  general journal 
A)  cash receipts journal 
B)  sales journal 
C)  purchases journal 
D)  general journal

Question 9

A remittance advice is a form of turn-around document.

Accepted Answer

A) True 
 B)False

Question 10

The accounts receivable clerk destroys all invoices for sales made to members of her family and does not record the sale in the accounts receivable subsidiary ledger. Which procedure will not detect this fraud?

Accepted Answer

A)  prenumber and sequence check all invoices 
B)  reconcile the accounts receivable control to the accounts receivable subsidiary ledger 
C)  prepare monthly customer statements 
D)  reconcile total sales on account to the debits in the accounts receivable subsidiary ledger 
A)  prenumber and sequence check all invoices 
B)  reconcile the accounts receivable control to the accounts receivable subsidiary ledger 
C)  prepare monthly customer statements 
D)  reconcile total sales on account to the debits in the accounts receivable subsidiary ledger

Question 11

A bill of lading is a request for payment for shipping charges.

Accepted Answer

A) True 
 B)False

Question 12

The clerk who opens the mail routinely steals remittances. Describe a specific internal control procedure that would prevent or detect this fraud.

Accepted Answer

supervision (two peo

Question 13

State two specific functions or jobs that should be segregated in the sales processing system.

Accepted Answer

sales order processing and cre

Question 14

Batch control continues through all stages of data processing.

Accepted Answer

A) True 
 B)False

Question 15

With regard to segregation of duties, rule two is that asset custody and record keeping should be separated. What does this require in the revenue cycle?

Accepted Answer

In the revenue cycle, the warehouse has

Question 16

What makes point-of-sale systems different from revenue cycles of manufacturing firms?

Accepted Answer

In point-of-sale systems, the customer l

Question 17

What specific internal control procedure would prevent a customer from being billed for all 50 items ordered although only 40 items were shipped?

Accepted Answer

billing should recon

Question 18

The warehouse is responsible for updating the inventory subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 19

In point of sale systems, authorization takes the form of validation of credit card charges.

Accepted Answer

A) True 
 B)False

Question 20

Usually specific authorization is required for all of the following except

Accepted Answer

A)  sales on account which exceed the credit limit 
B)  sales of goods at the list price 
C)  a cash refund for goods returned without a receipt 
D)  write off of an uncollectible account receivable 
A)  sales on account which exceed the credit limit 
B)  sales of goods at the list price 
C)  a cash refund for goods returned without a receipt 
D)  write off of an uncollectible account receivable

Commercial accounting systems have fully integrated modules. The word "integrated" means that

A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger. Describe a specific internal control procedure that would prevent this fraud.

What role does each of the following departments play in the sales order processing subsystem: sales, credit, and shipping? Be complete.

The customer open order file is used to

Which department is least likely to be involved in the revenue cycle?

The revenue cycle utilizes all of the following files except

When customer payments are received, the mailroom clerk sends the checks to the cash receipts clerk and the remittance advices to the AR clerk.

Which journal is not used in the revenue cycle?

A remittance advice is a form of turn-around document.

The accounts receivable clerk destroys all invoices for sales made to members of her family and does not record the sale in the accounts receivable subsidiary ledger. Which procedure will not detect this fraud?

A bill of lading is a request for payment for shipping charges.

The clerk who opens the mail routinely steals remittances. Describe a specific internal control procedure that would prevent or detect this fraud.

State two specific functions or jobs that should be segregated in the sales processing system.

Batch control continues through all stages of data processing.

With regard to segregation of duties, rule two is that asset custody and record keeping should be separated. What does this require in the revenue cycle?

What makes point-of-sale systems different from revenue cycles of manufacturing firms?

What specific internal control procedure would prevent a customer from being billed for all 50 items ordered although only 40 items were shipped?

The warehouse is responsible for updating the inventory subsidiary ledger.

In point of sale systems, authorization takes the form of validation of credit card charges.

Usually specific authorization is required for all of the following except

Auditing and Internal Control

Auditing IT Governance Controls

Auditing Operating Systems and Networks

Auditing Database Systems

Systems Development and Program Change Activities

Transaction Processing and Financial Reporting Systems Overview

Computer Assisted Audit Tools and Techniques

Data Structures and Caatts for Data Extraction

Auditing the Expenditure Cycle

Enterprise Resource Planning Systems

Business Ethics, Fraud, and Fraud Detection

Filters

Exam 9: Auditing the Revenue Cycle

Commercial accounting systems have fully integrated modules. The word "integrated" means that

A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger. Describe a specific internal control procedure that would prevent this fraud.

What role does each of the following departments play in the sales order processing subsystem: sales, credit, and shipping? Be complete.

The customer open order file is used to

Which department is least likely to be involved in the revenue cycle?

The revenue cycle utilizes all of the following files except

When customer payments are received, the mailroom clerk sends the checks to the cash receipts clerk and the remittance advices to the AR clerk.

Which journal is not used in the revenue cycle?

A remittance advice is a form of turn-around document.

The accounts receivable clerk destroys all invoices for sales made to members of her family and does not record the sale in the accounts receivable subsidiary ledger. Which procedure will not detect this fraud?

A bill of lading is a request for payment for shipping charges.

The clerk who opens the mail routinely steals remittances. Describe a specific internal control procedure that would prevent or detect this fraud.

State two specific functions or jobs that should be segregated in the sales processing system.

Batch control continues through all stages of data processing.

With regard to segregation of duties, rule two is that asset custody and record keeping should be separated. What does this require in the revenue cycle?

What makes point-of-sale systems different from revenue cycles of manufacturing firms?

What specific internal control procedure would prevent a customer from being billed for all 50 items ordered although only 40 items were shipped?

The warehouse is responsible for updating the inventory subsidiary ledger.

In point of sale systems, authorization takes the form of validation of credit card charges.

Usually specific authorization is required for all of the following except

Auditing and Internal Control

Auditing IT Governance Controls

Auditing Operating Systems and Networks

Auditing Database Systems

Systems Development and Program Change Activities

Transaction Processing and Financial Reporting Systems Overview

Computer Assisted Audit Tools and Techniques

Data Structures and Caatts for Data Extraction

Auditing the Expenditure Cycle

Enterprise Resource Planning Systems

Business Ethics, Fraud, and Fraud Detection

Filters