Question 1

At which point is supervision most critical in the cash receipts system?

Accepted Answer

A)  accounts receivable 
B)  general ledger 
C)  mail room 
D)  cash receipts 
A)  accounts receivable 
B)  general ledger 
C)  mail room 
D)  cash receipts C

Question 2

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 custody of physical assets while accounting (especially general ledger and inventory control)maintains the records.Also,in the cash receipts subsystem,cash receipts has custody of the asset (cash)while general ledger and accounts receivable keep the records.

Question 3

Which situation indicates a weak internal control structure?

Accepted Answer

A)  the mailroom clerk authorizes credit memos 
B)  the record keeping clerk maintains both accounts receivable and accounts payable subsidiary ledgers 
C)  the warehouse clerk obtains a signature before releasing goods for shipment 
D)  the accounts receivable clerk prepares customer statements every month 
A)  the mailroom clerk authorizes credit memos 
B)  the record keeping clerk maintains both accounts receivable and accounts payable subsidiary ledgers 
C)  the warehouse clerk obtains a signature before releasing goods for shipment 
D)  the accounts receivable clerk prepares customer statements every month A

Question 4

Integrated accounting systems automatically transfer data between modules.

Accepted Answer

A) True 
 B)False

Question 5

Periodically,the general ledger department receives all of the following except

Accepted Answer

A)  total increases to accounts receivable 
B)  total of all sales backorders 
C)  total of all sales 
D)  total decreases in inventory 
A)  total increases to accounts receivable 
B)  total of all sales backorders 
C)  total of all sales 
D)  total decreases in inventory

Question 6

The packing slip is also known as the shipping notice.

Accepted Answer

A) True 
 B)False

Question 7

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 8

For the revenue cycle,state two specific independent verifications that should be performed.

Accepted Answer

shipping verifies that the goods sent fr

Question 9

Which control does not help to ensure that accurate records are kept of customer accounts and inventory?

Accepted Answer

A)  reconcile accounts receivable control to accounts receivable subsidiary 
B)  authorize credit 
C)  segregate custody of inventory from record keeping 
D)  segregate record keeping duties of general ledger from accounts receivable 
A)  reconcile accounts receivable control to accounts receivable subsidiary 
B)  authorize credit 
C)  segregate custody of inventory from record keeping 
D)  segregate record keeping duties of general ledger from accounts receivable

Question 10

EDI trading partner agreements specify all of the following except

Accepted Answer

A)  selling price 
B)  quantities to be sold 
C)  payment terms 
D)  person to authorize transactions 
A)  selling price 
B)  quantities to be sold 
C)  payment terms 
D)  person to authorize transactions

Question 11

In most large organizations,the journal voucher file has replaced the formal general journal.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

In point-of-sale systems,the customer li

Question 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

How is independent verification carried out in a manual revenue system?

Accepted Answer

Independent verification occurs in sever

Question 16

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 17

What is automation and why is it used?

Accepted Answer

Automation involves using technology to

Question 18

What specific internal control procedure would prevent the sale of goods on account to a fictitious customer?

Accepted Answer

The answer of What specific internal control procedure would prevent...

Question 19

Distinguish between a packing slip,shipping notice,and a bill of lading.

Accepted Answer

The packing slip travels with the goods

Question 20

A credit sale is made to a customer,even though the customer's account is four months overdue.Describe a specific internal control procedure that would prevent this from happening.

Accepted Answer

perform a credit che

At which point is supervision most critical in the cash receipts system?

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?

Which situation indicates a weak internal control structure?

Integrated accounting systems automatically transfer data between modules.

Periodically,the general ledger department receives all of the following except

The packing slip is also known as the shipping notice.

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?

For the revenue cycle,state two specific independent verifications that should be performed.

Which control does not help to ensure that accurate records are kept of customer accounts and inventory?

EDI trading partner agreements specify all of the following except

In most large organizations,the journal voucher file has replaced the formal general journal.

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

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

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

How is independent verification carried out in a manual revenue system?

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.

What is automation and why is it used?

What specific internal control procedure would prevent the sale of goods on account to a fictitious customer?

Distinguish between a packing slip,shipping notice,and a bill of lading.

A credit sale is made to a customer,even though the customer's account is four months overdue.Describe a specific internal control procedure that would prevent this from happening.

Auditing and Internal Control

Auditing IT Governance Controls

Security Part I: Auditing Operating Systems and Networks

IT Security Part II: Auditing Database Systems

Systems Development and Program Change Activities

Overview of Transaction Processing and Financial Reporting Systems

Computer-Assisted Audit Tools and Techniques

Data Structures and CAATTs for Data Extraction

Auditing the Expenditure Cycle

Business Ethics, Fraud, and Fraud Detection

Enterprise Resource Planning Systems

Filters

Exam 9: Auditing the Revenue Cycle

At which point is supervision most critical in the cash receipts system?

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?

Which situation indicates a weak internal control structure?

Integrated accounting systems automatically transfer data between modules.

Periodically,the general ledger department receives all of the following except

The packing slip is also known as the shipping notice.

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?

For the revenue cycle,state two specific independent verifications that should be performed.

Which control does not help to ensure that accurate records are kept of customer accounts and inventory?

EDI trading partner agreements specify all of the following except

In most large organizations,the journal voucher file has replaced the formal general journal.

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

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

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

How is independent verification carried out in a manual revenue system?

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.

What is automation and why is it used?

What specific internal control procedure would prevent the sale of goods on account to a fictitious customer?

Distinguish between a packing slip,shipping notice,and a bill of lading.

A credit sale is made to a customer,even though the customer's account is four months overdue.Describe a specific internal control procedure that would prevent this from happening.

Auditing and Internal Control

Auditing IT Governance Controls

Security Part I: Auditing Operating Systems and Networks

IT Security Part II: Auditing Database Systems

Systems Development and Program Change Activities

Overview of Transaction Processing and Financial Reporting Systems

Computer-Assisted Audit Tools and Techniques

Data Structures and CAATTs for Data Extraction

Auditing the Expenditure Cycle

Business Ethics, Fraud, and Fraud Detection

Enterprise Resource Planning Systems

Filters