Question 1

The accounts payable clerk is responsible for updating the AP control accounts to reflect each vendor liability.

Accepted Answer

A) True 
 B)False

Question 2

Explain why a three-way match may not be required for transactions covered by a trading partner agreement.

Accepted Answer

Under a trading partner agreement,the pa

Question 3

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 4

To maintain a good credit rating and to optimize cash management,cash disbursements should arrive at the vendor's place of business

Accepted Answer

A) as soon as possible 
B) on the due date 
C) before the discount date 
D) by the end of the month 
A) as soon as possible 
B) on the due date 
C) before the discount date 
D) by the end of the month

Question 5

Discuss the input data edits that are programmed into a system to minimize the risk of errors.

Accepted Answer

Controls-including checks for missing da

Question 6

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 7

Describe two areas where segregation of duties is important in the expenditure cycle.

Accepted Answer

1.Segregation of inventory control from

Question 8

The document which will close the open purchase requisition file is the

Accepted Answer

A) purchase order 
B) vendor invoice 
C) receiving report 
D) payment voucher 
A) purchase order 
B) vendor invoice 
C) receiving report 
D) payment voucher

Question 9

Identify three IT controls in the expenditure cycle.

Accepted Answer

Error mess

Question 10

Explain how a voucher payable system works.How is the balance of AP determined?

Accepted Answer

In place of a standard accounts payable

Question 11

What are the six classes of physical internal controls? What is the purpose of these controls?

Accepted Answer

The six classes of physical internal con

Question 12

Usually the open voucher payable file is organized by

Accepted Answer

A) vendor 
B) payment due date 
C) purchase order number 
D) transaction date 
A) vendor 
B) payment due date 
C) purchase order number 
D) transaction date

Question 13

What is a blind copy of a purchase order and what is its purpose?

Accepted Answer

A blind copy of the PO contains no quant

Question 14

What are the steps taken in the basis technology cash disbursement system?

Accepted Answer

Each day the AP clerk reviews the AP pac

Question 15

Describe how the IT controls of automated purchase approval and automated postings to subsidiary and general ledger accounts help reduce risk.What is necessary to ensure these controls function properly?

Accepted Answer

The objective of automated purchase appr

Question 16

Which of the following is not a control over the risk of unauthorized inventory purchases?

Accepted Answer

A) transaction authorization 
B) automated purchase approval 
C) scanner technology 
D) All of the above are controls over the risk of unauthorized inventory purchases. 
A) transaction authorization 
B) automated purchase approval 
C) scanner technology 
D) All of the above are controls over the risk of unauthorized inventory purchases.

Question 17

The purchase order

Accepted Answer

A) is the source document to make an entry into the accounting records 
B) indicates item description, quantity, and price 
C) is prepared by the inventory control department 
D) is approved by the end-user department 
A) is the source document to make an entry into the accounting records 
B) indicates item description, quantity, and price 
C) is prepared by the inventory control department 
D) is approved by the end-user department

Question 18

What are the key authorization issues in purchasing and cash disbursements?

Accepted Answer

Inventory control monitors inventory and

Question 19

Discuss the steps taken in the purchasing department in a basic technology expenditure cycle.

Accepted Answer

The purchasing department receives purch

Question 20

To provide proper authorization control for inventory,what two departments should be segregated?

Accepted Answer

The inventory control departme

The accounts payable clerk is responsible for updating the AP control accounts to reflect each vendor liability.

Explain why a three-way match may not be required for transactions covered by a trading partner agreement.

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

To maintain a good credit rating and to optimize cash management,cash disbursements should arrive at the vendor's place of business

Discuss the input data edits that are programmed into a system to minimize the risk of errors.

The receiving department is not responsible to

Describe two areas where segregation of duties is important in the expenditure cycle.

The document which will close the open purchase requisition file is the

Identify three IT controls in the expenditure cycle.

Explain how a voucher payable system works.How is the balance of AP determined?

What are the six classes of physical internal controls? What is the purpose of these controls?

Usually the open voucher payable file is organized by

What is a blind copy of a purchase order and what is its purpose?

What are the steps taken in the basis technology cash disbursement system?

Describe how the IT controls of automated purchase approval and automated postings to subsidiary and general ledger accounts help reduce risk.What is necessary to ensure these controls function properly?

Which of the following is not a control over the risk of unauthorized inventory purchases?

The purchase order

What are the key authorization issues in purchasing and cash disbursements?

Discuss the steps taken in the purchasing department in a basic technology expenditure cycle.

To provide proper authorization control for inventory,what two departments should be segregated?

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

Filters

Exam 5: The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The accounts payable clerk is responsible for updating the AP control accounts to reflect each vendor liability.

Explain why a three-way match may not be required for transactions covered by a trading partner agreement.

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

To maintain a good credit rating and to optimize cash management,cash disbursements should arrive at the vendor's place of business

Discuss the input data edits that are programmed into a system to minimize the risk of errors.

The receiving department is not responsible to

Describe two areas where segregation of duties is important in the expenditure cycle.

The document which will close the open purchase requisition file is the

Identify three IT controls in the expenditure cycle.

Explain how a voucher payable system works.How is the balance of AP determined?

What are the six classes of physical internal controls? What is the purpose of these controls?

Usually the open voucher payable file is organized by

What is a blind copy of a purchase order and what is its purpose?

What are the steps taken in the basis technology cash disbursement system?

Describe how the IT controls of automated purchase approval and automated postings to subsidiary and general ledger accounts help reduce risk.What is necessary to ensure these controls function properly?

Which of the following is not a control over the risk of unauthorized inventory purchases?

The purchase order

What are the key authorization issues in purchasing and cash disbursements?

Discuss the steps taken in the purchasing department in a basic technology expenditure cycle.

To provide proper authorization control for inventory,what two departments should be segregated?

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics,fraud,and Internal Control

The Revenue Cycle

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Financial Reporting,and Management Reporting Systems

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Auditing It Controls Part I: Sarbanes-Oxley and It Governance

Auditing It Controls Part II: Security and Access

Auditing It Controls Part III: Systems Development, program Changes, and Application Auditing

Filters