Granting the credit is one business function of the sales returns and allowance class of transaction. True False
1. Granting the credit is one business function of the sales returns and allowance class of transaction.
True
2. The revenue should be recognized by the company once the cash is collected.
False
3. Which one of the following procedures performed for the billing function provides evidence for the occurrence assertion?
a. Making sure that no shipment has been billed more than twice or to the wrong customer
b. Making sure that each shipment is billed at the correct amount
c. Making sure that each shipment is billed on the proper period
d. Making sure that all shipments have been billed
4. The sales and collection cycle applies to:
a. Non-profit organizations.
b. Corporates.
c. none of the mentioned answers.
d. Governmental Bodies
5. Sales revenue should be recognized when:
a. sales are invoiced.
b. payment is received from the customer.
6. Which one of the following procedures performed for the billing function provides evidence for the accuracy assertion?
7. What critical event must take place before the customer can be billed?
b.Receipt of sales order from the customer
c. Processing customer order
d.Credit approval
8. A key internal control over the acquisition cycle is to ensure that the company requires recording transactions at correct quantities and amounts. This satisfies the transaction-related audit objective of:
10) The accounts payable department usually has responsibility for approving acquisitions for payment by comparing the details on the:
a. vendor's invoice and the receiving report only.
b.purchase requisition, purchase order, and receiving report.
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True
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False
12. All the supporting documents such as PO, vendor's invoice are attached to the voucher" is one of the key controls to meet Occurrence audit assertion.
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True
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False
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