Question 1

The bill of lading is a legal contract between the buyer and the seller.

Accepted Answer

A) True 
 B)False

Question 2

For each of the following documents, describe its purpose, the functional area preparing it, and the key data included: sales order, bill of lading, credit memo.

Accepted Answer

A sales order is used to collect informa

Question 3

Which of the following is not a risk exposure in a PC accounting system?

Accepted Answer

A)  reliance on paper documentation is increased 
B)  functions that are segregated in a manual environment may be combined in a microcomputer accounting system 
C)  backup procedures require human intervention 
D)  data are easily accessible 
A)  reliance on paper documentation is increased 
B)  functions that are segregated in a manual environment may be combined in a microcomputer accounting system 
C)  backup procedures require human intervention 
D)  data are easily accessible

Question 4

The printer ran out of preprinted sales invoice forms and several sales invoices were not printed. The best internal control to detect this error is

Accepted Answer

A)  a batch total of sales invoices to be prepared compared to the actual number of sales invoices prepared 
B)  sequentially numbered sales invoices 
C)  visual verification that all sales invoices were prepared 
D)  none of the above will detect this error 
A)  a batch total of sales invoices to be prepared compared to the actual number of sales invoices prepared 
B)  sequentially numbered sales invoices 
C)  visual verification that all sales invoices were prepared 
D)  none of the above will detect this error

Question 5

The purpose of the invoice is to bill the customer.

Accepted Answer

A) True 
 B)False

Question 6

In the revenue cycle, the internal control "limit access" applies to physical assets only.

Accepted Answer

A) True 
 B)False

Question 7

The cash receipts journal is a special journal.

Accepted Answer

A) True 
 B)False

Question 8

The credit department

Accepted Answer

A)  prepares credit memos when goods are returned 
B)  approves credits to accounts receivable when payments are received 
C)  authorizes the granting of credit to customers 
D)  none of the above 
A)  prepares credit memos when goods are returned 
B)  approves credits to accounts receivable when payments are received 
C)  authorizes the granting of credit to customers 
D)  none of the above

Question 9

A written customer purchase order is required to trigger the sales order system.

Accepted Answer

A) True 
 B)False

Question 10

What is a bill of lading?

Accepted Answer

The bill of lading, is a formal contract

Question 11

What specific internal control procedure would prevent an accounts receivable clerk from issuing a fictitious credit memo to a customer (who is also a relative) for goods that were "supposedly" returned from previous sales?

Accepted Answer

credit memo should be authoriz

Question 12

What are the key segregation of duties related to computer programs that process accounting transactions.

Accepted Answer

Response: The tasks of design, maintenan

Question 13

The data processing method that can shorten the cash cycle is

Accepted Answer

A)  batch, sequential file processing 
B)  batch, direct access file processing 
C)  real-time file processing 
D)  none of the above 
A)  batch, sequential file processing 
B)  batch, direct access file processing 
C)  real-time file processing 
D)  none of the above

Question 14

The stock release copy of the sales order is not used to

Accepted Answer

A)  locate and pick the items from the warehouse shelves 
B)  record any out-of-stock items 
C)  authorize the warehouse clerk to release custody of the inventory to shipping 
D)  record the reduction of inventory 
A)  locate and pick the items from the warehouse shelves 
B)  record any out-of-stock items 
C)  authorize the warehouse clerk to release custody of the inventory to shipping 
D)  record the reduction of inventory

Question 15

What is the role of the shipping notice?

Accepted Answer

The shipping notice triggers the billing

Question 16

Which document is NOT prepared by the sales department?

Accepted Answer

A)  packing slip 
B)  shipping notice 
C)  bill of lading 
D)  stock release 
A)  packing slip 
B)  shipping notice 
C)  bill of lading 
D)  stock release

Question 17

Another name for the stock release form is the picking ticket.

Accepted Answer

A) True 
 B)False

The bill of lading is a legal contract between the buyer and the seller.

For each of the following documents, describe its purpose, the functional area preparing it, and the key data included: sales order, bill of lading, credit memo.

Which of the following is not a risk exposure in a PC accounting system?

The printer ran out of preprinted sales invoice forms and several sales invoices were not printed. The best internal control to detect this error is

The purpose of the invoice is to bill the customer.

In the revenue cycle, the internal control "limit access" applies to physical assets only.

The cash receipts journal is a special journal.

The credit department

A written customer purchase order is required to trigger the sales order system.

What is a bill of lading?

What specific internal control procedure would prevent an accounts receivable clerk from issuing a fictitious credit memo to a customer (who is also a relative) for goods that were "supposedly" returned from previous sales?

What are the key segregation of duties related to computer programs that process accounting transactions.

The data processing method that can shorten the cash cycle is

The stock release copy of the sales order is not used to

What is the role of the shipping notice?

Which document is NOT prepared by the sales department?

Another name for the stock release form is the picking ticket.

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

The bill of lading is a legal contract between the buyer and the seller.

For each of the following documents, describe its purpose, the functional area preparing it, and the key data included: sales order, bill of lading, credit memo.

Which of the following is not a risk exposure in a PC accounting system?

The printer ran out of preprinted sales invoice forms and several sales invoices were not printed. The best internal control to detect this error is

The purpose of the invoice is to bill the customer.

In the revenue cycle, the internal control "limit access" applies to physical assets only.

The cash receipts journal is a special journal.

The credit department

A written customer purchase order is required to trigger the sales order system.

What is a bill of lading?

What specific internal control procedure would prevent an accounts receivable clerk from issuing a fictitious credit memo to a customer (who is also a relative) for goods that were "supposedly" returned from previous sales?

What are the key segregation of duties related to computer programs that process accounting transactions.

The data processing method that can shorten the cash cycle is

The stock release copy of the sales order is not used to

What is the role of the shipping notice?

Which document is NOT prepared by the sales department?

Another name for the stock release form is the picking ticket.

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