Question 1

In regards to the accounts payable department, which statement is not true?

Accepted Answer

A)  the purchase requisition shows that the transaction was authorized 
B)  the purchase order proves that the purchase was required 
C)  the receiving report provides evidence of the physical receipt of the goods 
D)  the supplier's invoice indicates the financial value of the transaction 
A)  the purchase requisition shows that the transaction was authorized 
B)  the purchase order proves that the purchase was required 
C)  the receiving report provides evidence of the physical receipt of the goods 
D)  the supplier's invoice indicates the financial value of the transaction B

Question 2

What is the purpose of a receiving report?

Accepted Answer

Upon completion of the physical count and inspection of the items received, the receiving clerk prepares a receiving report stating the quantity and condition of the inventories. This receiving report is sent to various other functions for reconciliation and updating of records.
One copy of the receiving report accompanies the physical inventories to either the raw materials storeroom or finished goods warehouse for safekeeping. Another copy is filed in the open/closed PO file to close out the PO. A third copy of the receiving report is sent to the AP department, where it is filed in the AP pending file. A fourth copy of the receiving report is sent to inventory control for updating the inventory records. Finally, a copy of the receiving report is placed in the receiving report file.

Question 3

The personnel action form provides authorization control by

Accepted Answer

A)  preventing paychecks for terminated employees 
B)  verifying pay rates for employees 
C)  informing payroll of new hires 
D)  all of the above 
A)  preventing paychecks for terminated employees 
B)  verifying pay rates for employees 
C)  informing payroll of new hires 
D)  all of the above D

Question 4

Explain why a three way match may not be required for transactions covered by a trading partner agreement.

Accepted Answer

Under a trading partner agreement the pa

Question 5

What is a vouchers payable system and why is it used?

Accepted Answer

Many firms use a vouchers payable system

Question 6

A supplier invoice

Accepted Answer

A)  is included with the goods 
B)  shows what was ordered even if all was not shipped 
C)  is sent by vendor to accounts payable 
D)  none of the above 
A)  is included with the goods 
B)  shows what was ordered even if all was not shipped 
C)  is sent by vendor to accounts payable 
D)  none of the above

Question 7

Time cards are used by cost accounting to allocate direct labor charges to work in process.

Accepted Answer

A) True 
 B)False

Question 8

If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report.

Accepted Answer

A) True 
 B)False

Question 9

Describe internal control procedures that would (1) detect that a vendor overcharged for goods delivered, (2) prevent payment for an invoice for goods that were never delivered and (3) prevent issuing two checks in payment of the same invoice.

Accepted Answer

(1) Accounts payable should compare the

Question 10

The inventory procurement process begins with the purchasing clerk preparing a purchase order.

Accepted Answer

A) True 
 B)False

Question 11

Because a time clock is used, no supervision is required when employees enter and leave the work place.

Accepted Answer

A) True 
 B)False

Question 12

How does the procedure for determining inventory requirements differ between a basic batch processing system and batch processing with real-time data input of sales and receipts of inventory? What about for the procedures used by the receiving department?

Accepted Answer

A system which employs real-time data en

Question 13

Which of the following statements is not correct?

Accepted Answer

A)  the voucher system is used to improve control over cash disbursements 
B)  the sum of the paid vouchers represents the voucher payable liability of the firm 
C)  the voucher system permits the firm to consolidate payments of several invoices on one voucher 
D)  many firms replace accounts payable with a voucher payable system 
A)  the voucher system is used to improve control over cash disbursements 
B)  the sum of the paid vouchers represents the voucher payable liability of the firm 
C)  the voucher system permits the firm to consolidate payments of several invoices on one voucher 
D)  many firms replace accounts payable with a voucher payable system

Question 14

If a company uses an actual cost system, inventory records can first be updated from the

Accepted Answer

A)  vendor invoice 
B)  purchase order 
C)  receiving report 
D)  purchase requisition 
A)  vendor invoice 
B)  purchase order 
C)  receiving report 
D)  purchase requisition

Question 15

Because of time delays between receiving inventory and making the journal entry

Accepted Answer

A)  liabilities are usually understated 
B)  liabilities are usually overstated 
C)  liabilities are usually correctly stated 
D)  none of the above 
A)  liabilities are usually understated 
B)  liabilities are usually overstated 
C)  liabilities are usually correctly stated 
D)  none of the above

Question 16

Why does the payroll process lend itself to batch processing?

Accepted Answer

Payroll lends itself to batch computeriz

Question 17

Inspection of shipments in the receiving department would be improved if the documentation showed the value of the inventory.

Accepted Answer

A) True 
 B)False

Question 18

Timekeeping is part of the personnel function.

Accepted Answer

A) True 
 B)False

Question 19

The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks.

Accepted Answer

A) True 
 B)False

Question 20

In a manufacturing firm, employees typically fill out two different documents regarding their time worked. What are they? Why are there two?

Accepted Answer

The two documents are the time card and

In regards to the accounts payable department, which statement is not true?

What is the purpose of a receiving report?

The personnel action form provides authorization control by

Explain why a three way match may not be required for transactions covered by a trading partner agreement.

What is a vouchers payable system and why is it used?

A supplier invoice

Time cards are used by cost accounting to allocate direct labor charges to work in process.

If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report.

Describe internal control procedures that would (1) detect that a vendor overcharged for goods delivered, (2) prevent payment for an invoice for goods that were never delivered and (3) prevent issuing two checks in payment of the same invoice.

The inventory procurement process begins with the purchasing clerk preparing a purchase order.

Because a time clock is used, no supervision is required when employees enter and leave the work place.

How does the procedure for determining inventory requirements differ between a basic batch processing system and batch processing with real-time data input of sales and receipts of inventory? What about for the procedures used by the receiving department?

Which of the following statements is not correct?

If a company uses an actual cost system, inventory records can first be updated from the

Because of time delays between receiving inventory and making the journal entry

Why does the payroll process lend itself to batch processing?

Inspection of shipments in the receiving department would be improved if the documentation showed the value of the inventory.

Timekeeping is part of the personnel function.

The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks.

In a manufacturing firm, employees typically fill out two different documents regarding their time worked. What are they? Why are there two?

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 Revenue Cycle

Enterprise Resource Planning Systems

Business Ethics, Fraud, and Fraud Detection

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Exam 10: Auditing the Expenditure Cycle

In regards to the accounts payable department, which statement is not true?

What is the purpose of a receiving report?

The personnel action form provides authorization control by

Explain why a three way match may not be required for transactions covered by a trading partner agreement.

What is a vouchers payable system and why is it used?

A supplier invoice

Time cards are used by cost accounting to allocate direct labor charges to work in process.

If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report.

Describe internal control procedures that would (1) detect that a vendor overcharged for goods delivered, (2) prevent payment for an invoice for goods that were never delivered and (3) prevent issuing two checks in payment of the same invoice.

The inventory procurement process begins with the purchasing clerk preparing a purchase order.

Because a time clock is used, no supervision is required when employees enter and leave the work place.

How does the procedure for determining inventory requirements differ between a basic batch processing system and batch processing with real-time data input of sales and receipts of inventory? What about for the procedures used by the receiving department?

Which of the following statements is not correct?

If a company uses an actual cost system, inventory records can first be updated from the

Because of time delays between receiving inventory and making the journal entry

Why does the payroll process lend itself to batch processing?

Inspection of shipments in the receiving department would be improved if the documentation showed the value of the inventory.

Timekeeping is part of the personnel function.

The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks.

In a manufacturing firm, employees typically fill out two different documents regarding their time worked. What are they? Why are there two?

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 Revenue Cycle

Enterprise Resource Planning Systems

Business Ethics, Fraud, and Fraud Detection

Filters