Question 1

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 2

Adjustments to accounts receivable for payments received from customers is based upon

Accepted Answer

A)  the customer's check 
B)  the cash prelist 
C)  the remittance advice that accompanies payment 
D)  a memo prepared in the mailroom 
A)  the customer's check 
B)  the cash prelist 
C)  the remittance advice that accompanies payment 
D)  a memo prepared in the mailroom

Question 3

What role does each of the following departments play in the sales order processing subsystem: sales,credit,and shipping? Be complete.

Accepted Answer

The sales department receives the order

Question 4

The accounts receivable clerk is responsible for updating the AR Control accounts to reflect each customer sale.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

What is the role of the shipping notice?

Accepted Answer

The shipping notice triggers the billing

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

What function does the receiving department serve in the revenue cycle?

Accepted Answer

The receiving department counts and insp

Question 9

How may an employee embezzle funds by issuing an unauthorized sales credit memo if the appropriate segregation of functions and authorization controls were not in place?

Accepted Answer

An employee who has access to incoming p

Question 10

Goods are shipped to a customer,but the shipping department does not notify billing and the customer never receives an invoice.Describe a specific internal control procedure that would detect this error.

Accepted Answer

Billing department matches the stock rel

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

All of the following are advantages of real-time processing of sales except

Accepted Answer

A)  The cash cycle is shortened 
B)  Paper work is reduced 
C)  Incorrect data entry is difficult to detect 
D)  Up-to-date information can provide a competitive advantage in the marketplace 
A)  The cash cycle is shortened 
B)  Paper work is reduced 
C)  Incorrect data entry is difficult to detect 
D)  Up-to-date information can provide a competitive advantage in the marketplace

Question 13

The customer open order file is used to

Accepted Answer

A)  respond to customer queries 
B)  fill the customer order 
C)  ship the customer order 
D)  authorize customer credit 
A)  respond to customer queries 
B)  fill the customer order 
C)  ship the customer order 
D)  authorize customer credit

Question 14

The adjustment to accounting records to reflect the decrease in inventory due to a sale occurs in the

Accepted Answer

A)  warehouse 
B)  shipping department 
C)  billing department 
D)  inventory control department 
A)  warehouse 
B)  shipping department 
C)  billing department 
D)  inventory control department

Question 15

Warehouse stock records are the formal accounting records for inventory.

Accepted Answer

A) True 
 B)False

Question 16

Copies of the sales order can be used for all of the following except

Accepted Answer

A)  purchase order 
B)  credit authorization 
C)  shipping notice 
D)  packing slip 
A)  purchase order 
B)  credit authorization 
C)  shipping notice 
D)  packing slip

Question 17

The most effective internal control procedure to prevent or detect the creation of fictitious credit memoranda for sales returns is to

Accepted Answer

A)  supervise the accounts receivable department 
B)  limit access to credit memoranda 
C)  prenumber and sequence check all credit memoranda 
D)  require management approval for all credit memoranda 
A)  supervise the accounts receivable department 
B)  limit access to credit memoranda 
C)  prenumber and sequence check all credit memoranda 
D)  require management approval for all credit memoranda

Question 18

Which department prepares the bill of lading?

Accepted Answer

A)  sales 
B)  warehouse 
C)  shipping 
D)  credit 
A)  sales 
B)  warehouse 
C)  shipping 
D)  credit

Question 19

State two specific functions or jobs that should be segregated in the sales processing system.

Accepted Answer

sales order processing and cre

Question 20

Which document is included with a shipment sent to a customer?

Accepted Answer

A)  sales invoice 
B)  stock release form 
C)  packing slip 
D)  shipping notice 
A)  sales invoice 
B)  stock release form 
C)  packing slip 
D)  shipping notice

The data processing method that can shorten the cash cycle is

Adjustments to accounts receivable for payments received from customers is based upon

What role does each of the following departments play in the sales order processing subsystem: sales,credit,and shipping? Be complete.

The accounts receivable clerk is responsible for updating the AR Control accounts to reflect each customer sale.

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

What is the role of the shipping notice?

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

What function does the receiving department serve in the revenue cycle?

How may an employee embezzle funds by issuing an unauthorized sales credit memo if the appropriate segregation of functions and authorization controls were not in place?

Goods are shipped to a customer,but the shipping department does not notify billing and the customer never receives an invoice.Describe a specific internal control procedure that would detect this error.

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?

All of the following are advantages of real-time processing of sales except

The customer open order file is used to

The adjustment to accounting records to reflect the decrease in inventory due to a sale occurs in the

Warehouse stock records are the formal accounting records for inventory.

Copies of the sales order can be used for all of the following except

The most effective internal control procedure to prevent or detect the creation of fictitious credit memoranda for sales returns is to

Which department prepares the bill of lading?

State two specific functions or jobs that should be segregated in the sales processing system.

Which document is included with a shipment sent to a customer?

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

The data processing method that can shorten the cash cycle is

Adjustments to accounts receivable for payments received from customers is based upon

What role does each of the following departments play in the sales order processing subsystem: sales,credit,and shipping? Be complete.

The accounts receivable clerk is responsible for updating the AR Control accounts to reflect each customer sale.

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

What is the role of the shipping notice?

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

What function does the receiving department serve in the revenue cycle?

How may an employee embezzle funds by issuing an unauthorized sales credit memo if the appropriate segregation of functions and authorization controls were not in place?

Goods are shipped to a customer,but the shipping department does not notify billing and the customer never receives an invoice.Describe a specific internal control procedure that would detect this error.

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?

All of the following are advantages of real-time processing of sales except

The customer open order file is used to

The adjustment to accounting records to reflect the decrease in inventory due to a sale occurs in the

Warehouse stock records are the formal accounting records for inventory.

Copies of the sales order can be used for all of the following except

The most effective internal control procedure to prevent or detect the creation of fictitious credit memoranda for sales returns is to

Which department prepares the bill of lading?

State two specific functions or jobs that should be segregated in the sales processing system.

Which document is included with a shipment sent to a customer?

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