Question 1

What is the purpose of the suppliers invoice?

Accepted Answer

The suppliers invoice triggers the three...

Question 2

The document that records the total amount of time spent on a production job is the

Accepted Answer

A)   time card
B)   job ticket
C)   labor distribution summary
D)   personnel action formE) A) and B)
F) B) and C)

Question 3

All of the following departments have a copy of the purchase order except

Accepted Answer

A)   the purchasing department
B)   the receiving department
C)   accounts payable
D)   general ledgerE) A) and C)
F) A) and B)

Question 4

If a company uses an actual cost system,inventory records can first be updated from the

Accepted Answer

A)   vendor invoice
B)   purchase order
C)   receiving report
D)   purchase requisitionE) None of the above
F) All of the above

Question 5

What is a vouchers payable system and why is it used?

Accepted Answer

Many firms use a vouchers payable system...

Question 6

Timekeeping is part of the personnel function.

Accepted Answer

A) True 
 B)False

Question 7

A three way match involves a purchase order,a purchase requisition,and an invoice.

Accepted Answer

A) True 
 B)False

Question 8

Explain why supervision is so important in the receiving department.

Accepted Answer

Receiving department employees have cust...

Question 9

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

Accepted Answer

A)   inventory control
B)   purchasing
C)   accounts payable
D)   cash disbursementsE) B) and D)
F) A) and C)

Question 10

Which department authorizes changes to employee pay rates?

Accepted Answer

The personnel depart...

Question 11

Authorization of purchases in a merchandising firm occurs in the inventory control department.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)   inventory control
B)   purchasing
C)   accounts payable
D)   cash disbursementsE) C) and D)
F) A) and B)

Question 13

Describe an internal control procedure that would prevent issuing two checks in payment of the same invoice.

Accepted Answer

The supporting documents shoul...

Question 14

What is the purpose of the purchase order?

Accepted Answer

The purchasing function receives the pur...

Question 15

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)   on the discount date
D)   by the end of the month.E) A) and D)
F) B) and C)

Question 16

What are the steps taken in the cash disbursement system?

Accepted Answer

Accounts payable reviews the documents r...

Question 17

Authorization for payment of an accounts payable liability is the responsibility of

Accepted Answer

A)   inventory control
B)   purchasing
C)   accounts payable
D)   cash disbursementsE) B) and C)
F) B) and D)

Question 18

Personnel actions forms are used to do all of the following except

Accepted Answer

A)   activate new employees
B)   terminate employees
C)   record hours worked
D)   change pay ratesE) B) and D)
F) C) and D)

Question 19

The major risk exposures associated with the receiving department include all of the following except

Accepted Answer

A)   goods are accepted without a physical count
B)   there is no inspection for goods damaged in shipment
C)   inventories are not secured on the receiving dock
D)   the audit trail is destroyedE) None of the above
F) B) and C)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 10: Auditing the Expenditure Cycle

What is the purpose of the purchase order?

Correct AnswerverifiedThe purchasing function receives the pur...View AnswerShow Answer

Which department authorizes changes to employee pay rates?

Correct AnswerverifiedThe personnel depart...View AnswerShow Answer

What is a vouchers payable system and why is it used?

Correct AnswerverifiedMany firms use a vouchers payable system...View AnswerShow Answer

Authorization of purchases in a merchandising firm occurs in the inventory control department.

Correct AnswerverifiedShow Answer

What is the purpose of the suppliers invoice?

Correct AnswerverifiedThe suppliers invoice triggers the three...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Describe an internal control procedure that would prevent issuing two checks in payment of the same invoice.

Correct AnswerverifiedThe supporting documents shoul...View AnswerShow Answer

Timekeeping is part of the personnel function.

Correct AnswerverifiedShow Answer

Explain why supervision is so important in the receiving department.

Correct AnswerverifiedReceiving department employees have cust...View AnswerShow Answer

A three way match involves a purchase order,a purchase requisition,and an invoice.

Correct AnswerverifiedShow Answer

Authorization for payment of an accounts payable liability is the responsibility of

Correct AnswerverifiedShow Answer

Personnel actions forms are used to do all of the following except

Correct AnswerverifiedShow Answer

If a company uses an actual cost system,inventory records can first be updated from the

Correct AnswerverifiedShow Answer

What are the steps taken in the cash disbursement system?

Correct AnswerverifiedAccounts payable reviews the documents r...View AnswerShow Answer

All of the following departments have a copy of the purchase order except

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The document that records the total amount of time spent on a production job is the

Correct AnswerverifiedShow Answer

The major risk exposures associated with the receiving department include all of the following except

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
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The purchasing function receives the pur...
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The personnel depart...
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Many firms use a vouchers payable system...
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Correct Answer
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The suppliers invoice triggers the three...
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Correct Answer
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The supporting documents shoul...
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Correct Answer
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Receiving department employees have cust...
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Correct Answer
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Correct Answer
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Accounts payable reviews the documents r...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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