Question 1

If a company uses a standard cost system,inventory records can be updated from the

Accepted Answer

A)  vendor invoice 
B)  purchase order 
C)  receiving report 
D)  purchase requisition 
A)  vendor invoice 
B)  purchase order 
C)  receiving report 
D)  purchase requisition

Question 2

Describe an internal control procedure that would prevent an employee from punching the time clock for another,absent employee.

Accepted Answer

supervision of the t

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Payroll checks are typically drawn on

Accepted Answer

A)  the regular checking account 
B)  a payroll imprest account 
C)  a wages payable account 
D)  petty cash 
A)  the regular checking account 
B)  a payroll imprest account 
C)  a wages payable account 
D)  petty cash

Question 5

The Golf Club Company makes custom golf clubs.The manufacturing supervisor interviews people who have specialized manufacturing skills,and he informs payroll when an employee is hired.The employees use a time clock to record the hours they work.The employees are also required to keep a record of the time they spend working on each order.The supervisor approves all time cards.
The accountant analyzes the job tickets and prepares a labor distribution summary.Payroll prepares the payroll register and paychecks.The supervisor distributes the paychecks to the employees.Payroll informs cash disbursement of the funds required to cover the entire payroll amount.The cash disbursements clerk ensures that there are adequate funds in the company's regular checking account to cover the payroll.
Describe at least three internal control weaknesses; for each weakness suggest an improvement to internal control.

Accepted Answer

WEAKNESS: The supervisor could be creati

Question 6

The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks.

Accepted Answer

A) True 
 B)False

Question 7

Work-in-process records are updated by payroll personnel.

Accepted Answer

A) True 
 B)False

Question 8

Where does the responsibility lie for reconciling the labor distribution summary and the payroll disbursement voucher?

Accepted Answer

A)  cash disbursements 
B)  cost accounting 
C)  personnel 
D)  general ledger 
A)  cash disbursements 
B)  cost accounting 
C)  personnel 
D)  general ledger

Question 9

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.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Outline the key steps taken in a payroll system that deals with hourly workers who are paid once each week?

Accepted Answer

Work centers monitor employee time and p

Question 12

Why would an organization require the paymaster to deliver all unclaimed paychecks to the internal audit department?

Accepted Answer

A)  to detect a "phantom employee" for whom a check was produced 
B)  to prevent an absent employee's check from being lost 
C)  to avoid paying absent employees for payday 
D)  to prevent the paymaster from cashing unclaimed checks 
A)  to detect a "phantom employee" for whom a check was produced 
B)  to prevent an absent employee's check from being lost 
C)  to avoid paying absent employees for payday 
D)  to prevent the paymaster from cashing unclaimed checks

Question 13

Differentiate between a purchase requisition and a purchase order.

Accepted Answer

A purchase requisition is completed by t

Question 14

The payroll department performs all of the following except

Accepted Answer

A)  prepares the payroll register 
B)  distributes paychecks 
C)  updates employee payroll records 
D)  prepares paychecks 
A)  prepares the payroll register 
B)  distributes paychecks 
C)  updates employee payroll records 
D)  prepares paychecks

Question 15

Authorization for a cash disbursement occurs in the cash disbursement department upon receipt of the supplier's invoice.

Accepted Answer

A) True 
 B)False

Question 16

Copies of a purchase order are sent to all of the following except

Accepted Answer

A)  inventory control 
B)  receiving 
C)  general ledger 
D)  accounts payable 
A)  inventory control 
B)  receiving 
C)  general ledger 
D)  accounts payable

Question 17

What is the principle objective of the cash disbursement system?

Accepted Answer

The principal objective of this system i

Question 18

If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report.

Accepted Answer

A) True 
 B)False

Question 19

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 20

When searching for unrecorded liabilities at the end of an accounting period,the accountant would search all of the files except

Accepted Answer

A)  the purchase requisition file 
B)  the cash receipts file 
C)  the purchase order file 
D)  the receiving report file 
A)  the purchase requisition file 
B)  the cash receipts file 
C)  the purchase order file 
D)  the receiving report file

If a company uses a standard cost system,inventory records can be updated from the

Describe an internal control procedure that would prevent an employee from punching the time clock for another,absent employee.

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

Payroll checks are typically drawn on

The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks.

Work-in-process records are updated by payroll personnel.

Where does the responsibility lie for reconciling the labor distribution summary and the payroll disbursement voucher?

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

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

Outline the key steps taken in a payroll system that deals with hourly workers who are paid once each week?

Why would an organization require the paymaster to deliver all unclaimed paychecks to the internal audit department?

Differentiate between a purchase requisition and a purchase order.

The payroll department performs all of the following except

Authorization for a cash disbursement occurs in the cash disbursement department upon receipt of the supplier's invoice.

Copies of a purchase order are sent to all of the following except

What is the principle objective of the cash disbursement system?

If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report.

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

When searching for unrecorded liabilities at the end of an accounting period,the accountant would search all of the files except

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 Revenue Cycle

Business Ethics, Fraud, and Fraud Detection

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Exam 10: Auditing the Expenditure Cycle

If a company uses a standard cost system,inventory records can be updated from the

Describe an internal control procedure that would prevent an employee from punching the time clock for another,absent employee.

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

Payroll checks are typically drawn on

The supervisor is the best person to determine the existence of a "phantom employee" and should distribute paychecks.

Work-in-process records are updated by payroll personnel.

Where does the responsibility lie for reconciling the labor distribution summary and the payroll disbursement voucher?

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

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

Outline the key steps taken in a payroll system that deals with hourly workers who are paid once each week?

Why would an organization require the paymaster to deliver all unclaimed paychecks to the internal audit department?

Differentiate between a purchase requisition and a purchase order.

The payroll department performs all of the following except

Authorization for a cash disbursement occurs in the cash disbursement department upon receipt of the supplier's invoice.

Copies of a purchase order are sent to all of the following except

What is the principle objective of the cash disbursement system?

If accounts payable receives an invoice directly from the supplier it needs to be reconciled with the purchase order and receiving report.

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

When searching for unrecorded liabilities at the end of an accounting period,the accountant would search all of the files except

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 Revenue Cycle

Business Ethics, Fraud, and Fraud Detection

Enterprise Resource Planning Systems

Filters