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

A major risk exposure in the expenditure cycle is that accounts payable may be overstated at the end of the accounting year.

In a merchandising firm, authorization for the purchase of inventory is the responsibility of

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

Identify three IT controls in the expenditure cycle.

Describe an internal control procedure that would prevent payment of an invoice for goods that were never delivered.

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

The general ledger function receives the AP account summary from cash disbursements.

In a firm with proper segregation of duties, adequate supervision is most critical in

When a trading partner agreement is in place, the traditional three way match may be eliminated.

Identify six classes of physical controls employed in the expenditure cycle and give one example of each.

Goods received are inspected and counted to