Question 1

What is the purpose of the suppliers invoice?

Accepted Answer

The suppliers invoice triggers the three

Question 2

Usually the open voucher payable file is organized by

Accepted Answer

A)  vendor 
B)  payment due date 
C)  purchase order number 
D)  transaction date 
A)  vendor 
B)  payment due date 
C)  purchase order number 
D)  transaction date

Question 3

The personnel department authorizes changes in employee pay rates.

Accepted Answer

A) True 
 B)False

Question 4

The blind copy of the purchase order that goes to the receiving department contains no item descriptions.

Accepted Answer

A) True 
 B)False

Question 5

When a trading partner agreement is in place, the traditional three way match may be eliminated.

Accepted Answer

A) True 
 B)False

Question 6

Supervision in receiving is intended to reduce the theft of assets.

Accepted Answer

A) True 
 B)False

Question 7

Explain why supervision is so important in the receiving department.

Accepted Answer

Receiving department employees have cust

Question 8

One reason for authorizing purchases is to enable efficient inventory management.

Accepted Answer

A) True 
 B)False

Question 9

The major risk exposures associated with the receiving department include all of the following except

Accepted Answer

A)  goods are accepted without a physical count 
B)  there is no inspection for goods damaged in shipment 
C)  inventories are not secured on the receiving dock 
D)  the audit trail is destroyed 
A)  goods are accepted without a physical count 
B)  there is no inspection for goods damaged in shipment 
C)  inventories are not secured on the receiving dock 
D)  the audit trail is destroyed

Question 10

A purchasing system that employs electronic data interchange does not use a purchase order.

Accepted Answer

A) True 
 B)False

Question 11

Differentiate between a purchase requisition and a purchase order.

Accepted Answer

A purchase requisition is completed by t

Question 12

Proper segregation of duties requires that the responsibility approving a payment be separated from posting to the cash disbursements journal.

Accepted Answer

A) True 
 B)False

Question 13

The financial value of a purchase is determined by reviewing the

Accepted Answer

A)  packing slip 
B)  purchase requisition 
C)  receiving report 
D)  supplier's invoice 
A)  packing slip 
B)  purchase requisition 
C)  receiving report 
D)  supplier's invoice

Question 14

The receiving report is prepared by the vendor to provide evidence that the purchase order was received.

Accepted Answer

A) True 
 B)False

Question 15

The accounts payable department reconciles the accounts payable subsidiary ledger to the control account.

Accepted Answer

A) True 
 B)False

Question 16

The purpose of the purchase order is to

Accepted Answer

A)  order goods from vendors 
B)  record receipt of goods from vendors 
C)  authorize the purchasing department to order goods 
D)  approve payment for goods received 
A)  order goods from vendors 
B)  record receipt of goods from vendors 
C)  authorize the purchasing department to order goods 
D)  approve payment for goods received

Question 17

The payroll department is responsible for both updating the employee records and writing paychecks.

Accepted Answer

A) True 
 B)False

Question 18

Authorization of purchases in a merchandising firm occurs in the inventory control department.

Accepted Answer

A) True 
 B)False

Question 19

In a merchandising firm, authorization for the payment of inventory is the responsibility of

Accepted Answer

A)  inventory control 
B)  purchasing 
C)  accounts payable 
D)  cash disbursements 
A)  inventory control 
B)  purchasing 
C)  accounts payable 
D)  cash disbursements

Question 20

Which internal control is not an important part of the payroll system?

Accepted Answer

A)  Supervisors verify the accuracy of employee time cards. 
B)  Paychecks are distributed by an independent paymaster. 
C)  Accounts payable verifies the accuracy of the payroll register before transferring payroll funds to the general checking accounting. 
D)  General ledger reconciles the labor distribution summary and the payroll disbursement voucher. 
A)  Supervisors verify the accuracy of employee time cards. 
B)  Paychecks are distributed by an independent paymaster. 
C)  Accounts payable verifies the accuracy of the payroll register before transferring payroll funds to the general checking accounting. 
D)  General ledger reconciles the labor distribution summary and the payroll disbursement voucher.

What is the purpose of the suppliers invoice?

Usually the open voucher payable file is organized by

The personnel department authorizes changes in employee pay rates.

The blind copy of the purchase order that goes to the receiving department contains no item descriptions.

When a trading partner agreement is in place, the traditional three way match may be eliminated.

Supervision in receiving is intended to reduce the theft of assets.

Explain why supervision is so important in the receiving department.

One reason for authorizing purchases is to enable efficient inventory management.

The major risk exposures associated with the receiving department include all of the following except

A purchasing system that employs electronic data interchange does not use a purchase order.

Differentiate between a purchase requisition and a purchase order.

Proper segregation of duties requires that the responsibility approving a payment be separated from posting to the cash disbursements journal.

The financial value of a purchase is determined by reviewing the

The receiving report is prepared by the vendor to provide evidence that the purchase order was received.

The accounts payable department reconciles the accounts payable subsidiary ledger to the control account.

The purpose of the purchase order is to

The payroll department is responsible for both updating the employee records and writing paychecks.

Authorization of purchases in a merchandising firm occurs in the inventory control department.

In a merchandising firm, authorization for the payment of inventory is the responsibility of

Which internal control is not an important part of the payroll system?

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

Exam 10: Auditing the Expenditure Cycle

What is the purpose of the suppliers invoice?

Usually the open voucher payable file is organized by

The personnel department authorizes changes in employee pay rates.

The blind copy of the purchase order that goes to the receiving department contains no item descriptions.

When a trading partner agreement is in place, the traditional three way match may be eliminated.

Supervision in receiving is intended to reduce the theft of assets.

Explain why supervision is so important in the receiving department.

One reason for authorizing purchases is to enable efficient inventory management.

The major risk exposures associated with the receiving department include all of the following except

A purchasing system that employs electronic data interchange does not use a purchase order.

Differentiate between a purchase requisition and a purchase order.

Proper segregation of duties requires that the responsibility approving a payment be separated from posting to the cash disbursements journal.

The financial value of a purchase is determined by reviewing the

The receiving report is prepared by the vendor to provide evidence that the purchase order was received.

The accounts payable department reconciles the accounts payable subsidiary ledger to the control account.

The purpose of the purchase order is to

The payroll department is responsible for both updating the employee records and writing paychecks.

Authorization of purchases in a merchandising firm occurs in the inventory control department.

In a merchandising firm, authorization for the payment of inventory is the responsibility of

Which internal control is not an important part of the payroll system?

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