Question 1

Which of the following statements is not true?

Accepted Answer

A)  Routine payroll processing begins with the submission of time cards. 
B)  Payroll clerks must verify the hours reported on the time cards. 
C)  Payroll reconciles personnel action forms with time cards and prepares paychecks. 
D)  Cash disbursements signs paychecks and forwards them to the paymaster for distribution. 
A)  Routine payroll processing begins with the submission of time cards. 
B)  Payroll clerks must verify the hours reported on the time cards. 
C)  Payroll reconciles personnel action forms with time cards and prepares paychecks. 
D)  Cash disbursements signs paychecks and forwards them to the paymaster for distribution.

Question 2

Why should employee paychecks be drawn against a special checking account?

Accepted Answer

A separate imprest account is establishe

Question 3

Explain the purpose of each of the following documents used in the payroll system:
the personnel action form, the job ticket, the time card.

Accepted Answer

The personnel action form is a document

Question 4

What type of errors or fraud might happen if (1) the accounts payable ledger is not periodically reconciled to the control account in the general ledger and (2) suppliers' invoices are not compared to purchase orders or to receiving reports before payment?

Accepted Answer

(1) errors in A/P processing w

Question 5

Payroll uses time card data to do all of the following except

Accepted Answer

A)  prepare the payroll register 
B)  update employee payroll records 
C)  prepare the labor distribution summary 
D)  prepare paychecks 
A)  prepare the payroll register 
B)  update employee payroll records 
C)  prepare the labor distribution summary 
D)  prepare paychecks

Question 6

Most payroll systems for mid-size firms use real-time data processing.

Accepted Answer

A) True 
 B)False

Question 7

Why should the copy of a purchase order, which is sent to receiving, be a "blind" copy?

Accepted Answer

to force workers in

Question 8

Describe internal control procedures that would (1) prevent an employee from punching the time clock for another, absent employee and (2) prevent a supervisor from stealing the unclaimed paychecks of employees who have been terminated.

Accepted Answer

1() Supervision of the time clock at the

Question 9

Inventory control should be located in the warehouse.

Accepted Answer

A) True 
 B)False

Question 10

The use of inventory reorder points suggests the need to obtain specific authorization.

Accepted Answer

A) True 
 B)False

Question 11

Outline the key steps taken in the purchasing system.

Accepted Answer

Inventory control monitors inventory and

Question 12

The reason that a blind copy of the purchase order is sent to receiving is to

Accepted Answer

A)  inform receiving when a shipment is due 
B)  force a count of the items delivered 
C)  inform receiving of the type, quantity, and price of items to be delivered 
D)  require that the goods delivered are inspected 
A)  inform receiving when a shipment is due 
B)  force a count of the items delivered 
C)  inform receiving of the type, quantity, and price of items to be delivered 
D)  require that the goods delivered are inspected

Question 13

The receiving department is not responsible to

Accepted Answer

A)  inspect shipments received 
B)  count items received from vendors 
C)  order goods from vendors 
D)  safeguard goods until they are transferred to the warehouse 
A)  inspect shipments received 
B)  count items received from vendors 
C)  order goods from vendors 
D)  safeguard goods until they are transferred to the warehouse

Question 14

A major risk exposure in the expenditure cycle is that accounts payable may be overstated at the end of the accounting year.

Accepted Answer

A) True 
 B)False

Question 15

Name two major benefits of automating the purchasing effort.

Accepted Answer

improved inventory c

Question 16

In the payroll subsystem, which function should distribute paychecks?

Accepted Answer

A)  personnel 
B)  timekeeping 
C)  paymaster 
D)  payroll 
A)  personnel 
B)  timekeeping 
C)  paymaster 
D)  payroll

Question 17

What internal accounting control(s) would be the most effective in preventing a storekeeper from taking inventory home at night? When shortages become apparent, he claims the goods were never received.

Accepted Answer

receiving records it

Question 18

Which of the following situations represents a serious control weakness?

Accepted Answer

A)  Timekeeping is independent of the payroll department. 
B)  Paychecks are distributed by the employees immediate supervisor. 
C)  Time cards are reconciled with job tickets. 
D)  Personnel is responsible for updating employee records, including creation of records for new hires. 
A)  Timekeeping is independent of the payroll department. 
B)  Paychecks are distributed by the employees immediate supervisor. 
C)  Time cards are reconciled with job tickets. 
D)  Personnel is responsible for updating employee records, including creation of records for new hires.

Question 19

What is(are) the purpose(s) of maintaining a valid vendor file?

Accepted Answer

Inventories should only be acquired from

Question 20

Of the following duties, it is most important to separate

Accepted Answer

A)  warehouse from stores 
B)  warehouse from inventory control 
C)  accounts payable and accounts receivable 
D)  purchasing and accounts receivable 
A)  warehouse from stores 
B)  warehouse from inventory control 
C)  accounts payable and accounts receivable 
D)  purchasing and accounts receivable

Which of the following statements is not true?

Why should employee paychecks be drawn against a special checking account?

Explain the purpose of each of the following documents used in the payroll system: the personnel action form, the job ticket, the time card.

What type of errors or fraud might happen if (1) the accounts payable ledger is not periodically reconciled to the control account in the general ledger and (2) suppliers' invoices are not compared to purchase orders or to receiving reports before payment?

Payroll uses time card data to do all of the following except

Most payroll systems for mid-size firms use real-time data processing.

Why should the copy of a purchase order, which is sent to receiving, be a "blind" copy?

Describe internal control procedures that would (1) prevent an employee from punching the time clock for another, absent employee and (2) prevent a supervisor from stealing the unclaimed paychecks of employees who have been terminated.

Inventory control should be located in the warehouse.

The use of inventory reorder points suggests the need to obtain specific authorization.

Outline the key steps taken in the purchasing system.

The reason that a blind copy of the purchase order is sent to receiving is to

The receiving department is not responsible to

A major risk exposure in the expenditure cycle is that accounts payable may be overstated at the end of the accounting year.

Name two major benefits of automating the purchasing effort.

In the payroll subsystem, which function should distribute paychecks?

What internal accounting control(s) would be the most effective in preventing a storekeeper from taking inventory home at night? When shortages become apparent, he claims the goods were never received.

Which of the following situations represents a serious control weakness?

What is(are) the purpose(s) of maintaining a valid vendor file?

Of the following duties, it is most important to separate

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

Which of the following statements is not true?

Why should employee paychecks be drawn against a special checking account?

Explain the purpose of each of the following documents used in the payroll system: the personnel action form, the job ticket, the time card.

What type of errors or fraud might happen if (1) the accounts payable ledger is not periodically reconciled to the control account in the general ledger and (2) suppliers' invoices are not compared to purchase orders or to receiving reports before payment?

Payroll uses time card data to do all of the following except

Most payroll systems for mid-size firms use real-time data processing.

Why should the copy of a purchase order, which is sent to receiving, be a "blind" copy?

Describe internal control procedures that would (1) prevent an employee from punching the time clock for another, absent employee and (2) prevent a supervisor from stealing the unclaimed paychecks of employees who have been terminated.

Inventory control should be located in the warehouse.

The use of inventory reorder points suggests the need to obtain specific authorization.

Outline the key steps taken in the purchasing system.

The reason that a blind copy of the purchase order is sent to receiving is to

The receiving department is not responsible to

A major risk exposure in the expenditure cycle is that accounts payable may be overstated at the end of the accounting year.

Name two major benefits of automating the purchasing effort.

In the payroll subsystem, which function should distribute paychecks?

What internal accounting control(s) would be the most effective in preventing a storekeeper from taking inventory home at night? When shortages become apparent, he claims the goods were never received.

Which of the following situations represents a serious control weakness?

What is(are) the purpose(s) of maintaining a valid vendor file?

Of the following duties, it is most important to separate

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