ACC 3202 midterm 2 Chan
4. One of the most critical controls to prevent theft of inventory purchased is to: A. Require authorization of the purchase requisition. B. Segregate inventory custody from inventory record keeping. C. Compare the purchase order, receiving report, and invoice. D. Segregate the authorization of purchases from the inventory record keeping.
B
5. Internal control is strengthened by the use of a blind purchase order, upon which the quantity of goods ordered is intentionally left blank. This blind copy is used in which department? A. The department that initiated the purchase request. B. The receiving department. C. The purchasing department. D. The accounts payable department.
B
5.Which of the following best describes what is meant by the term "generally accepted auditing standards"? A.Procedures used to gather evidence to support the accuracy of a client's financial statements. B.Measures of the quality of an auditor's conduct. C.Professional pronouncements issued by the Auditing Standards Board. D.Rules acknowledged by the accounting profession because of their widespread application.
B
7. The IT environment plays a key role in how auditors conduct their work in all but which of the following areas: A. Consideration of Risk B. Consideration of Information Fairness C. Design and Performance of Audit Tests D. Audit Procedures Used
B
7.A request for proposal (RFP) is used during the A.Phase-in period. B.Purchase of software C.Feasibility study D.In-house design
B
8. Many companies design their IT system so that all documents and reports can be retrieved from the system in readable form. Auditors can then compare the documents used to input the data into the system with reports generated from the system, without gaining any extensive knowledge of the computer system and does not require the evaluation for computer controls. This process is referred to as: A. Auditing through the system B. Auditing around the system C. Computer assisted audit techniques D. Auditing with the computer
B
8.Which of the following audit objectives relates to the management assertion of existence? A.A transaction is recorded in the proper period. B.A transaction actually occurred (i.e., it is real) C.A transaction is properly presented in the financial statements. D.A transaction is supported by detailed evidence.
B
81. Tracing shipping documents to prenumbered sales invoices provides evidence that a. No duplicate shipments or billings occurred. b. Shipments to customers were properly invoiced. c. All goods ordered by customers were shipped. d. All prenumbered sales invoices were accounted for.
B
7. The source document that initiates the recording of the return and the adjustment to the customer's credit status is the: A. Pick list B. Sales journal C. Credit memorandum D. Sales invoice
C
11.The use of the SDLC for IT system changes is important for several reasons. Which of the following is not part of the purposes of the SDLC processes? A.As a part of strategic management of the organization B.As part of the internal control structure of the organization C.As part of the audit of an IT system D.As partial fulfillment of management's ethical obligations
C
12. The comparison of the shipping records with the sales journal and invoices is completed to minimize the related risk of: A. Invalid transactions B. Fictitious customers C. Omitted transactions D. Duplicate transactions
C
12.Which of the following is the most significant disadvantage of auditing around the computer rather than through the computer? A.The time involved in testing processing controls is significant. B.The cost involved in testing processing controls is significant. C.A portion of the audit trail is not tested. D.The technical expertise required to test processing controls is extensive.
C
13.The primary objective of compliance testing in a financial statement audit is to determine whether: A.Procedures have been updated regularly. B.Financial statement amounts are accurately stated. C.Internal controls are functioning as designed. D.Collusion is taking place.
C
15. An IT system that uses touch screens, bar coded products, and credit card authorization during the sale is called a(n): A. Electronic data interchange system. B. E-commerce system. C. Point of sales system. D. E-payables system.
C
15.Which of the following computer assisted auditing techniques allows fictitious and real transactions to be processed together without client personnel being aware of the testing process? A.Test data method B.Embedded audit module C.Integrated test facility D.Parallel simulation
C
7.Auditors should design a written audit program so that: A.All material transactions will be included in substantive testing. B.Substantive testing performed prior to year end will be minimized. C.The procedures will achieve specific audit objectives related to specific management assertions. D.Each account balance will be tested under either a substantive test or a test of controls.
C
2. Personnel who work in the receiving area should completed all of the following processes, except: A. Counting the goods received B. Inspecting goods received for damage C. Preparing a receiving report D. Preparing an invoice
D
2. Which of the following is not one of the approaches used to achieve the management of an IT control framework? A. Information Systems Audit and Control Association control objectives for IT B. The International Organization for Standardization 17799, Code of Practice for Information Security Management C. The Information Technology Infrastructure Library D. Sarbanes-Oxley Act section on IT Controls
D
21.Which of the following terms in not associated with the auditor's requirement to maintain independence? A.Objectivity B.Neutrality C.Professional Skepticism D.Competence
D
4. The study of the current system to determine the strengths and weaknesses and the user needs of that system is called: A. Systems Analysis B. Systems Design C. Systems Planning D. Systems Implementation
A
4.Which of the following feasibility aspects is an evaluation of whether the technology exists to meet the need identified in the proposed change to the IT system? A.Technical feasibility B.Operational feasibility C.Economic feasibility D.Schedule feasibility
A
16. It is important that documentation support or agree with an invoice before payment is approved and a check is issued. Which documents should be matched to make sure that the invoice received relates to a valid order that was placed and that the goods were received? A. Purchase requisition, purchase order, and receiving report. B. Purchase order, receiving log, and invoice. C. Purchase requisition, receiving report, and statement. D. Purchase order, receiving report, and invoice.
C
12. When a company sells items over the Internet, it is usually called e-commerce. There are many IT risks related to Internet sales. The risk of invalid data entered by a customer would be a(n): A. Availability risk. B. Processing integrity risk. C. Security risk. D. Confidentiality risk.
B
12. Within accounts payable, to ensure that each voucher is submitted and paid only once, each invoice approved to be paid should be: A. Supported by a receiving report. B. Stamped "paid" by the check signer. C. Prenumbered and accounted for. D. Approved for authorized purchases.
B
13. For proper segregation of duties in cash disbursements, the person who signs checks also: A. Reviews the monthly bank reconciliation. B. Returns the checks to accounts payable. C. Is denied access to the supporting documents. D. Is responsible for mailing the checks.
B
13. In order to ensure that all records are updated only for authorized transactions, appropriate individuals should be assigned all of the following duties, except: A. Opening and closing all bank accounts. B. Preparing the bank reconciliation. C. Approving bank deposits. D. Approving electronic transfers of funds.
B
16. Which of the following IT systems is designed to avoid the document matching process and is an "invoiceless" system? A. Computer-based matching system B. Electronic data interchange C. Evaluated receipt settlement D. Microsoft Dynamics GP®
C
17.Suppose that during the planning phase of an audit, the auditor determines that weaknesses exist in the client's computerized systems. These weaknesses make the client company susceptible to the risk of an unauthorized break-in. Which type of audit procedures should be emphasized in the remaining phases of this audit? A.Tests of controls B.Penetration tests C.Substantive tests D.Rounding errors tests
C
20.Which of the following is most likely to be an attribute unique to the audit work of CPAs, compared with work performed by attorneys or practitioners of other business professions? A.Due professional care B.Competence C.Independence D.A complex underlying body of professional knowledge
C
14. Independent checks and reconciliations, related to cash receipts, include all of the following, except: A. Cash counts should occur on a surprise basis and be conducted by someone not responsible for cash receipts functions. B. Cash collections should be deposited in the bank in a timely manner to prevent the risk of theft. C. Physical count of cash needs to be conducted from time to time in order to compare actual cash on hand with the amounts in the accounting records. D. Daily bank deposits should be compared with the detail on the related remittance advice and in the cash receipts journal.
B
15. Which of the following is not an independent verification related to cash disbursements? A. The cash disbursements journal is reconciled to the general ledger. B. The stock of unused checks should be adequately secured and controlled. C. The bank statement is reconciled on a monthly basis. D. The accounts payable subsidiary ledger is reconciled to the general ledger.
B
17. Input controls such as field check, validity check, limit check, and reasonableness check are useful in IT systems of purchase to lessen which of the following risks? A. Unauthorized access B. Invalid data entered by vendors C. Repudiation of purchase transactions D. Virus and worm attacks
B
17. It is necessary for a company to maintain good control over their accounts payable and paying by the due date, for all of the following reasons, except: A. Avoid late payment fees B. Maintain relationships with customers C. To take advantage of discounts for early payment D. To stay on good terms with its vendors
B
18. Which of the following is most likely to be effective in deterring fraud by upper level managers? A. Internal controls B. An enforced code of ethics C. Matching documents prior to payment D. Segregating custody of inventory from inventory record keeping
B
3. This phase of SDLC involves the planning and continuing oversight of the design, implementation, and use of the IT systems. A. Systems Analysis B. Systems Implementation C. Systems Planning D. Systems Design
C
3. Which of the given departments will immediately adjust the vendor account for each purchase transaction so that the company will know the correct amount owed to the vendor? A. Purchasing B. Receiving C. Accounts Payable D. Shipping
C
3.Which of the following is not part of the system design phase of the SDLC? A.Conceptual design B.Evaluation and selection C.Parallel operation D.Detailed design
C
4.Which of the following is not a part of general accepted auditing standards? A.General Standards B.Standards of Fieldwork C.Standards of Information Systems D.Standards of Reporting
C
5. Which of the following is not a major purpose served by the continual and proper use of the IT governance committee and the SDLC? A. The fulfillment of ethical obligations B. The strategic management process of the organization C. The conversion of the system D. The internal control structure of the organization
C
2.Financial statement audits are required to be performed by: A.Governmental Auditors B.CPAs C.Internal Auditors D.IT Auditors
B
2.Which phase of the system development life cycle includes determining user needs of the IT system? A.Systems planning B.Systems analysis C.Systems design D.Systems implementation
B
2. An example of an independent verification in the sale process is: A. Preparation of packing lists on prenumbered forms. B. Initialing the sales order. C. Proof of recorded dates, quantities, and prices on an invoice. D. Physical controls in record storage areas.
c
4. The purpose of tracing sales invoices to shipping documents would be to provide evidence that: A. Shipments to customers were properly invoiced. B. No duplicate shipments or billings occurred. C. Goods billed to customers were shipped. D. All prenumbered sales invoices were accounted for.
c
3.Which of the following is not considered a cause for information risk? A.Management's geographic location is far from the source of the information needed to make effective decisions. B.The information is collected and prepared by persons who use the information for very different purposes. C.The information relates to business activities that are not well understood by those who collect and summarize the information for decision makers. D.The information has been tested by internal auditors and a CPA firm.
D
1. Within the revenue processes, a signed approval of a sales order indicates all of the following except: A. The date of delivery. B. The sale is to an accepted customer. C. The customer's credit has been approved. D. The sales price is correct.
A
10. Immediately upon receiving checks from customers in the mail, a responsible employee working in an environment of adequate internal control should prepare a listing of receipts and forward it to the company's cashier. A copy of this cash receipts listing should also be sent to the company's: A. Treasurer for comparison with the monthly bank statement. B. Internal auditor for investigation of any unusual transactions. C. Accounts receivable clerk for updating of the accounts receivable subsidiary ledger. D. Bank for comparison with deposit slips.
A
10.A retail store chain is developing a new integrated computer system for sales and inventories in its store locations. Which of the following implementation methods would involve the most risk? A.Direct cutover B.Phased-in implementation C.Parallel running D.Pilot testing
A
10.Risk assessment is a process designed to: A.Identify possible events that may affect the business. B.Establish policies and procedures to carry out internal controls. C.Identify and capture information in a timely manner. D.Review the quality of internal controls throughout the year.
A
11. A manager suspects that certain employees are ordering merchandise for themselves over the Internet without recording the purchase or receipt of the merchandise. When vendors' invoices arrive, one of the employees approves the invoices for payment. After the invoices are paid, the employee destroys the invoices and related vouchers. To trace whether this is actually happening, it would be best to begin tracing from the: A. Cash disbursements. B. Approved vouchers. C. Receiving reports. D. Vendors' invoices.
A
11.Which of the following audit procedures is most likely to be performed during the planning phase of the audit? A.Obtain an understanding of the client's risk assessment process. B.Identify specific internal control activities that are designed to prevent fraud. C.Evaluate the reasonableness of the client's accounting estimates. D.Test the timely cutoff of cash payments and collections.
A
13. When a company sells items over the Internet, there are many IT risks. The risk of hardware and software failures that prevent website sales would be a(n): A. Availability risk. B. Processing integrity risk. C. Security risk. D. Confidentiality risk.
A
14. Which of the following internal controls would help prevent overpayment to a vendor or duplicate payment to a vendor? A. Review and cancellation of supporting documents after issuing payment. B. Requiring the check signer to mail the payment to the vendor C. Review of the accounts where the expenditure transaction has been recorded D. Approving the purchase before the goods are ordered from the vendor
A
16.Which of the following is a general control to test for external access to a client's computerized systems? A.Penetration tests B.Hash totals C.Field checks D.Program tracing
A
18.Generalized audit software can be used to: A.Examine the consistency of data maintained on computer files. B.Perform audit tests of multiple computer files concurrently. C.Verify the processing logic of operating system software. D.Process test data against master files that contain both real and fictitious data.
A
19.Independent auditors are generally actively involved in each of the following tasks except: A.Preparation of a client's financial statements and accompanying notes. B.Advising client management as to the applicability of a new accounting standard. C.Proposing adjustments to a client's financial statements. D.Advising client management about the presentation of the financial statements.
A
6. A type of assurance services that involves accumulating and analyzing support for the information provided by management is called an: A. Audit B. Investigation C. Financial Statement Examination D. Control Test
A
6. Under a system of sound internal controls, if a company sold defective goods, the return of those goods from the customer should be accepted by the: A. Receiving Clerk B. Sales Clerk C. Purchasing Clerk D. Inventory Control Clerk
A
6.In an audit of financial statement in accordance with generally accepted auditing standards, an auditor is required to: A.Document the auditor's understanding of the client company's internal controls. B.Search for weaknesses in the operation of the client company's internal controls. C.Perform tests of controls to evaluate the effectiveness of the client company's internal controls. D.Determine whether controls are appropriately designed to prevent or detect material misstatements.
A
6.Within the systems analysis phase of the SDLC, which of the following data collection methods does not involve any feedback from users of the IT system? A.Documentation review B.Interviews using structured questions C.Interviews using unstructured questions D.Questionnaires
A
79. Which of the following procedures would an auditor most likely perform to test controls relating to management's assertion about the completeness of cash receipts for cash sales at a retail outlet? a. Observe the consistency of the employees' use of cash registers and tapes. b. Inquire about employees' access to recorded but undeposited cash. c. Trace deposits in the cash receipts journal to the cash balance in the general ledger. d. Compare the cash balance in the general ledger with the bank confirmation request.
A
82. Which of the following controls most likely would reduce the risk of diversion of customer receipts by an entity's employees? a. A bank lockbox system. b. Prenumbered remittance advices. c. Monthly bank reconciliations. d. Daily deposit of cash receipts.
A
83. An auditor suspects that a client's cashier is misappropriating cash receipts for personal use by lapping customer checks received in the mail. In attempting to uncover this embezzlement scheme, the auditor most likely would compare the a. Dates checks are deposited per bank statements with the dates remittance credits are recorded. b. Daily cash summaries with the sums of the cash receipts journal entries. c. Individual bank deposit slips with the details of the monthly bank statements. d. Dates uncollectible accounts are authorized to be written off with the dates the write-offs are actually recorded.
A
87. Which of the following controls most likely would assure that all billed sales are correctly posted to the accounts receivable ledger? a. Daily sales summaries are compared to daily postings to the accounts receivable ledger. b. Each sales invoice is supported by a prenumbered shipping document. c. The accounts receivable ledger is reconciled daily to the control account in the general ledger. d. Each shipment on credit is supported by a prenumbered sales invoice.
A
88. An auditor tests an entity's policy of obtaining credit approval before shipping goods to customers in support of management's financial statement assertion of a. Valuation or allocation. b. Completeness. c. Existence or occurrence. d. Rights and obligations.
A
9. The document prepared when purchased items are returned is a(n): A. Debit memo B. Invoice C. Receiving report D. Shipping notice
A
1. To fulfill the management obligations that are an integral part of IT governance, management need not focus on: A. Aligning IT strategy with the business strategy B. Hiring an acceptable IT manager C. Measuring IT's performance D. Insisting that an IT control framework be adopted and implemented
B
1.IT governance includes all but which of the following responsibilities? A.Aligning IT strategy with the business strategy B.Writing programming code for IT systems C.Insisting that an IT control framework be adopted and implemented D.Measuring IT's performance
B
1.Which of the following types of audits is most likely to be conducted for the purpose of identifying areas for cost savings? A.Financial Statement Audits B.Operational Audits C.Regulatory Audits D.Compliance Audits
B
10. Within cash disbursements, all of the following should be true before a check is prepared, except that: A. The purchase order, receiving report, and invoice have been matched. B. The purchased goods have been used. C. Sufficient cash is available. D. The invoice discount date or due date is imminent.
B
11. Common types of independent checks within the revenue process include all of the following, except: A. Verification of information in the sales journal and on sales invoices. B. Verification of the bank statement and the cash account in the general journal. C. Reconciliation of accounts receivable detail with invoices and with the general ledger. D. Reconciliation of inventory records with actual (counted) quantities on hand.
B
86. Which of the following audit procedures would an auditor most likely perform to test controls relating to management's assertion concerning the completeness of sales transactions? a. Verify that extensions and footings on the entity's sales invoices and monthly customer statements have been recomputed. b. Inspect the entity's reports of prenumbered shipping documents that have not been recorded in the sales journal. c. Compare the invoiced prices on prenumbered sales invoices to the entity's authorized price list. d. Inquire about the entity's credit granting policies and the consistent application of credit checks.
B
9. IT audit procedures typically include a combination of data accuracy tests where the data processed by computer applications are reviewed for correct dollar amounts or other numerical values. These procedures are referred to as: A. Security controls B. Processing controls C. Input controls D. Output controls
B
92. Employers bond employees who handle cash receipts because fidelity bonds reduce the possibility of employing dishonest individuals and a. Protect employees who make unintentional misstatements from possible monetary damages resulting from their misstatements. b. Deter dishonesty by making employees aware that insurance companies may investigate and prosecute dishonest acts. c. Facilitate an independent monitoring of the receiving and depositing of cash receipts. d. Force employees in positions of trust to take periodic vacations and rotate their assigned duties.
B
94. When a customer fails to include a remittance advice with a payment, it is common practice for the person opening the mail to prepare one. Consequently, mail should be opened by which of the following four company employees? a. Credit manager. b. Receptionist. c. Sales manager. d. Accounts receivable clerk.
B
8. In a system of proper internal controls, the same employee should not be allowed to: A. Sign checks and cancel the supporting voucher package. B. Receive goods and prepare the related receiving report. C. Prepare voucher packages and sign checks. D. Initiate purchase requisitions and inspect goods received.
C
80. Sound internal control dictates that immediately upon receiving checks from customers by mail, a responsible employee should a. Add the checks to the daily cash summary. b. Verify that each check is supported by a prenumbered sales invoice. c. Prepare a duplicate listing of checks received. d. Record the checks in the cash receipts journal.
C
84. Upon receipt of customers' checks in the mailroom, a responsible employee should prepare a remittance listing that is forwarded to the cashier. A copy of the listing should be sent to the a. Internal auditor to investigate the listing for unusual transactions. b. Treasurer to compare the listing with the monthly bank statement. c. Accounts receivable bookkeeper to update the subsidiary accounts receivable records. d. Entity's bank to compare the listing with the cashier's deposit slip.
C
9. Which of the following would represent proper segregation of duties? A. The employee who has custody of cash also does accounts receivable record keeping. B. The employee who has custody of cash completes the bank reconciliation. C. The employee who opens mail containing checks prepares a list of checks received. D. The employee who opens mail containing checks records transactions in the general ledger.
C
90. Which of the following controls most likely would be effective in offsetting the tendency of sales personnel to maximize sales volume at the expense of high bad debt write-offs? a. Employees responsible for authorizing sales and bad debt write-offs are denied access to cash. b. Shipping documents and sales invoices are matched by an employee who does not have authority to write off bad debts. c. Employees involved in the credit-granting function are separated from the sales function. d. Subsidiary accounts receivable records are reconciled to the control account by an employee independent of the authorization of credit.
C
93. During the consideration of a small business client's internal control, the auditor discovered that the accounts receivable clerk approves credit memos and has access to cash. Which of the following controls would be most effective in offsetting this weakness? a. The owner reviews errors in billings to customers and postings to the subsidiary ledger. b. The controller receives the monthly bank statement directly and reconciles the checking accounts. c. The owner reviews credit memos after they are recorded. d. The controller reconciles the total of the detail accounts receivable accounts to the amount shown in the ledger.
C
1. Within the purchases processes, which of the following is the first document prepared and thereby the one that triggers the remaining purchasing processes? A. The invoice B. The receiving report C. The purchase order D. The purchase requisition
D
10. This type of processing control test involves a comparison of different items that are expected to have the same values, such s comparing two batches or comparing actual data against a predetermined control total. A. Validation Checks B. Batch Totals C. Run-to-Run Totals D. Balancing Tests
D
11. If a company does not prepare an aging of accounts receivable, which of the following accounts is most likely to be misstated? A. Sales revenues B. Accounts receivable C. Sales returns and allowances D. Allowance for uncollectible accounts
D
12.Confidentiality of information is an ethical consideration for which of the following party or parties? A.Management B.Employees C.Consultants D.All of the above.
D
14. The use of electronic data interchange (EDI) to conduct sales electronically has both risks and benefits. Which of the following is a benefit of EDI, rather than a risk? A. Incomplete audit trail B. Repudiation of sales transactions C. Unauthorized access D. Shorter inventory cycle time
D
14.Which of the following computer assisted auditing techniques processes actual client input data (or a copy of the real data) on a controlled program under the auditor's control to periodically test controls in the client's computer system? A.Test data method B.Embedded audit module C.Integrated test facility D.Parallel simulation
D
15. Whenever a company grants credit to customers, there is a danger that customers will not pay. In fact, most companies have occasional problems with customers who fail to pay which leads to writing off the accounts receivable. Proper controls related to these uncollectible accounts include all of the following, except: A. Segregation of responsibilities so that no one has the opportunity to write off an account to cover up stolen cash. B. Thorough guidelines are to be established for determining the amount of an allowance for uncollectible accounts. C. An accounts receivable aging report should be generated to analyze all customer balances and the lengths of time that have elapsed since the payments were due. D. Mathematical verification of the cash receipts journal and the accounts receivable ledger
D
16. Which of the following is not a method of unethically inflating sales revenue? A. Channel stuffing B. Holding sales open C. Premature recognition of contingent sales D. Promotional price discounts
D
5. To ensure that all credit sales transactions of an entity are recorded, which of the following controls would be most effective? A. On a monthly basis, the accounting department supervisor reconciles the accounts receivable subsidiary ledger to the accounts receivable control account. B. The supervisor of the accounting department investigates any account balance differences reported by customers. C. The supervisor of the billing department sends copies of approved sales orders to the credit department for comparison of authorized credit limits and current customer balances. D. The supervisor of the billing department matches prenumbered shipping documents with entries recorded in the sale journal.
D
5.The purpose of the feasibility study is to assist in A.Selecting software B.Designing internal controls C.Designing reports for the IT system D.Prioritizing IT requested changes
D
6. Which of the following questions would most likely be included in an internal control questionnaire concerning the completeness of purchasing transactions? A. Is an authorized purchase order required before the receiving department can accept a shipment or the accounts payable department can record a voucher? B. Are prenumbered purchase requisitions used and are they subsequently matched with vendor invoices? C. Is there a regular reconciliation of the inventory records with the file of unpaid vouchers? D. Are prenumbered purchase orders, receiving reports, and vouchers used, and are the entire sequences accounted for?
D
7. Which of the following controls is not normally performed in the accounts payable department? A. The vendor's invoice is matched with the related receiving report. B. Vendor invoices are approved for payment. C. Asset and expense accounts to be recorded are assigned. D. Unused purchase orders and receiving reports are accounted for.
D
8. Which of the following is not a document that is part of the cash collection process? A. Remittance advice B. Cash receipts journal C. Bank deposit slip D. Packing slip
D
8.Which of the following steps within the systems implementation phase could not occur concurrently with other steps, but would occur at the end? A.Employee training B.Data conversion C.Software programming D.Post-implementation review
D
85. Which of the following procedures most likely would not be a control designed to reduce the risk of misstatements in the billing process? a. Comparing control totals for shipping documents with corresponding totals for sales invoices. b. Using computer programmed controls on the pricing and mathematical accuracy of sales invoices. c. Matching shipping documents with approved sales orders before invoice preparation. d. Reconciling the control totals for sales invoices with the accounts receivable subsidiary ledger.
D
89. Which of the following controls most likely would help ensure that all credit sales transactions of an entity are recorded? a. The billing department supervisor sends copies of approved sales orders to the credit department for comparison to authorized credit limits and current customer account balances. b. The accounting department supervisor indepen-dently reconciles the accounts receivable subsidiary ledger to the accounts receivable control account monthly. c. The accounting department supervisor controls the mailing of monthly statements to customers and investigates any differences reported by customers. d. The billing department supervisor matches prenumbered shipping documents with entries in the sales journal.
D
9.Each of the following are methods for implementing a new application system except: A.Direct cutover B.Parallel C.Pilot D.Test
D
9.Which of the following statements regarding an audit program is true? A.A standard audit program should be developed for use on any client engagement. B.The audit program should be completed by the client company before the audit planning stage begins. C.An audit program should be developed by the internal auditor before audit testing begins. D.An audit program establishes responsibility for each audit test by requiring the signature or initials of the auditor who performed the test.
D
91. Proper authorization of write-offs of uncollectible accounts should be approved in which of the following departments? a. Accounts receivable. b. Credit. c. Accounts payable. d. Treasurer.
D
3. The purpose of tracing shipping documents to prenumbered sales invoices would be to provide evidence that: A. Shipments to customers were properly invoiced. B. No duplicate shipments or billings occurred. C. Goods billed to customers were shipped. D. All prenumbered sales invoices were accounted for.
a
