Question 1

The clerk who opens the mail routinely steals remittances.Describe a specific internal control procedure that would prevent or detect this fraud.

Accepted Answer

supervision (two peo

Question 2

The warehouse is responsible for updating the inventory subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 3

The credit department

Accepted Answer

A)  prepares credit memos when goods are returned 
B)  approves credits to accounts receivable when payments are received 
C)  authorizes the granting of credit to customers 
D)  none of the above 
A)  prepares credit memos when goods are returned 
B)  approves credits to accounts receivable when payments are received 
C)  authorizes the granting of credit to customers 
D)  none of the above

Question 4

Good internal controls in the revenue cycle should ensure all of the following except

Accepted Answer

A)  all sales are profitable 
B)  all sales are recorded 
C)  credit is authorized 
D)  inventory to be shipped is not stolen 
A)  all sales are profitable 
B)  all sales are recorded 
C)  credit is authorized 
D)  inventory to be shipped is not stolen

Question 5

State two specific functions or jobs that should be segregated in the cash receipts system.

Accepted Answer

cash receipts (custody)from ac

Question 6

How is EDI more than technology? What unique control problems may it pose?

Accepted Answer

EDI represents a unique business arrange

Question 7

What specific internal control procedure would prevent the shipping clerk from taking goods from the storeroom and sending them to someone who had not placed an order?

Accepted Answer

shipping clerk shoul

Question 8

The shipping notice

Accepted Answer

A)  is mailed to the customer 
B)  is a formal contract between the seller and the shipping company 
C)  is always prepared by the shipping clerk 
D)  informs the billing department of the quantities shipped 
A)  is mailed to the customer 
B)  is a formal contract between the seller and the shipping company 
C)  is always prepared by the shipping clerk 
D)  informs the billing department of the quantities shipped

Question 9

What specific internal control procedure would detect the misplacement of a sales invoice after preparation and not mailed to the customer? The invoice was never found.

Accepted Answer

all docume

Question 10

What role does each of the following departments play in the cash receipts subsystem: mail room,cash receipts,accounts receivable,and general ledger? Be complete.

Accepted Answer

The mail room receives the customer's pa

Question 11

Give three examples of Access Control in a Point-of-Sale (POS)system.

Accepted Answer

· Lock on the cash drawer
· Internal cas

Question 12

The printer ran out of preprinted sales invoice forms and several sales invoices were not printed.The best internal control to detect this error is

Accepted Answer

A)  a batch total of sales invoices to be prepared compared to the actual number of sales invoices prepared 
B)  sequentially numbered sales invoices 
C)  visual verification that all sales invoices were prepared 
D)  none of the above will detect this error 
A)  a batch total of sales invoices to be prepared compared to the actual number of sales invoices prepared 
B)  sequentially numbered sales invoices 
C)  visual verification that all sales invoices were prepared 
D)  none of the above will detect this error

Question 13

A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger.Describe a specific internal control procedure that would prevent this fraud.

Accepted Answer

segregation of duties; do not

Question 14

The principal source document in the sales order system is the sales order.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a risk exposure in a PC accounting system?

Accepted Answer

A)  reliance on paper documentation is increased 
B)  functions that are segregated in a manual environment may be combined in a microcomputer accounting system 
C)  backup procedures require human intervention 
D)  data are easily accessible 
A)  reliance on paper documentation is increased 
B)  functions that are segregated in a manual environment may be combined in a microcomputer accounting system 
C)  backup procedures require human intervention 
D)  data are easily accessible

Question 16

Another name for the stock release form is the picking ticket.

Accepted Answer

A) True 
 B)False

Question 17

What is the purpose of the credit memo?

Accepted Answer

This document is the authorization for t

Question 18

If a customer submits a written purchase order,there is no need to prepare a sales order.

Accepted Answer

A) True 
 B)False

Question 19

What features of a reengineered cash receipts system contribute to improved control and reduced costs? What complicates the process?

Accepted Answer

A reengineered cash receipts system can

Question 20

In a computerized accounting system,segregation of functions refers to inventory control,accounts receivable,billing,and general ledger tasks.

Accepted Answer

A) True 
 B)False

The clerk who opens the mail routinely steals remittances.Describe a specific internal control procedure that would prevent or detect this fraud.

The warehouse is responsible for updating the inventory subsidiary ledger.

The credit department

Good internal controls in the revenue cycle should ensure all of the following except

State two specific functions or jobs that should be segregated in the cash receipts system.

How is EDI more than technology? What unique control problems may it pose?

What specific internal control procedure would prevent the shipping clerk from taking goods from the storeroom and sending them to someone who had not placed an order?

The shipping notice

What specific internal control procedure would detect the misplacement of a sales invoice after preparation and not mailed to the customer? The invoice was never found.

What role does each of the following departments play in the cash receipts subsystem: mail room,cash receipts,accounts receivable,and general ledger? Be complete.

Give three examples of Access Control in a Point-of-Sale (POS)system.

The printer ran out of preprinted sales invoice forms and several sales invoices were not printed.The best internal control to detect this error is

A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger.Describe a specific internal control procedure that would prevent this fraud.

The principal source document in the sales order system is the sales order.

Which of the following is not a risk exposure in a PC accounting system?

Another name for the stock release form is the picking ticket.

What is the purpose of the credit memo?

If a customer submits a written purchase order,there is no need to prepare a sales order.

What features of a reengineered cash receipts system contribute to improved control and reduced costs? What complicates the process?

In a computerized accounting system,segregation of functions refers to inventory control,accounts receivable,billing,and general ledger tasks.

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 clerk who opens the mail routinely steals remittances.Describe a specific internal control procedure that would prevent or detect this fraud.

The warehouse is responsible for updating the inventory subsidiary ledger.

The credit department

Good internal controls in the revenue cycle should ensure all of the following except

State two specific functions or jobs that should be segregated in the cash receipts system.

How is EDI more than technology? What unique control problems may it pose?

What specific internal control procedure would prevent the shipping clerk from taking goods from the storeroom and sending them to someone who had not placed an order?

The shipping notice

What specific internal control procedure would detect the misplacement of a sales invoice after preparation and not mailed to the customer? The invoice was never found.

What role does each of the following departments play in the cash receipts subsystem: mail room,cash receipts,accounts receivable,and general ledger? Be complete.

Give three examples of Access Control in a Point-of-Sale (POS)system.

The printer ran out of preprinted sales invoice forms and several sales invoices were not printed.The best internal control to detect this error is

A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger.Describe a specific internal control procedure that would prevent this fraud.

The principal source document in the sales order system is the sales order.

Which of the following is not a risk exposure in a PC accounting system?

Another name for the stock release form is the picking ticket.

What is the purpose of the credit memo?

If a customer submits a written purchase order,there is no need to prepare a sales order.

What features of a reengineered cash receipts system contribute to improved control and reduced costs? What complicates the process?

In a computerized accounting system,segregation of functions refers to inventory control,accounts receivable,billing,and general ledger tasks.

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