SCP Corporation purchased inventory on accountfrom OBP Corporation . Which of the followinghappens immediately after the first step in SCP'sacquisition / payment process ? Select one :a. The second step in SCP's acquisition / paymentprocessb. The second step in OBP's sales / collectionprocessc. The first step in OBP's sales / collection processd. An internal audit of the transaction by OBP

Name: SCP Corporation purchased inventory on accountfrom OBP Corporation .
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Description: SCP Corporation purchased inventory on accountfrom OBP Corporation . Which of the followinghappens immediately after the first step in SCP'sacquisition / payment process ? Select one :a. The second step in SCP's acquisition / paymentprocessb. The se

According to the above question, Step 1: The first step in SCP's acquisition/payment process.

Answered: SCP Corporation purchased inventory on…

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Accounting

SCP Corporation purchased inventory on account from OBP Corporation . Which of the following happens immediately after the first step in SCP's acquisition / payment process ? Select one :

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 3CYBK

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SCP Corporation purchased inventory on account from OBP Corporation . Which of the following occurred first? Select one : O a. A value chain analysis of the transaction O b The first step in OBP's sales / c * o collection process c. Management approval of the transaction Od. The first step in P^ prime s acquisition /payment process
Accounting information systems have five generic elements . Which of the following pairs includes examples of two different elements within the context of the acquisition /payment process ? Select one : a. All of these b. Journal entry that debits inventory and credits cash O c. Separation of duties and a blind copy of the receiving report O d. Purchase requisition and schedule of accounts payable
The accounts payable department usually has responsibility for approving acquisitions for payment by comparing the details on the: vendor's invoice and the receiving report only. purchase requisition, purchase order, and receiving report. vendor's invoice and the purchase requisition only. purchase order, receiving report, and vendor's invoice
The following internal controls for the acquisition and payment cycle were selected from a standard internal control questionnaire.1. Approved purchase orders are required for all acquisitions of goods.2. Prenumbered receiving reports are prepared as support for acquisitions and numeri-cally accounted for.3. Dates on receiving reports are compared with vendors’ invoices before entry into theacquisitions journal.4. Account classifications are reviewed by someone other than the preparer.5. All supporting documents are cancelled after checks are signed or electronic fundstransfers are approved.6. The authorized signer compares data on supporting documents with checks and elec-tronic funds transfer authorizations.7. Vendors’ invoices are recalculated before payment.8. All checks are signed by the owner or manager.9. Checks are mailed by the owner or manager or a person under her supervision aftersigning. .10. The accounts payable master file is updated, balanced, and reconciled to the…
Which of the following statements best explains the relationship between the acquisition/payment process and the sales/collection process? Group of answer choices A. The same transaction can be considered part of both processes. B. All organizations that have a sales/collection process also have an inventory acquisition/payment process. C. Both the same transaction can be considered part of both processes and all organizations that have a sales/collection process also have an inventory acquisition/payment process. D. Neither the same transaction can be considered part of both processes nor all organizations that have a sales/collection process also have an inventory acquisition/payment process.
Which of the following audit procedures probably would provide the most reliable evidence related to the entity’s assertion of rights and obligations for the inventory account?a. Trace test counts noted during physical count to the summarization of quantities.b. Inspect agreements for evidence of inventory held on consignment.c. Select the last few shipping advices used before the physical count and determine whether the shipments were recorded as sales.d. Inspect the open purchase order file for significant commitments to consider for disclosure.
the purchases and disbursements cycle usually begins when a. a user department request for acquisition of goods or services and submits purchase requisition to the purchasing department b. a check is issued to the vendor or supplier c. the warehouse is received the goods from the vendor or supplier d. the accounting posts the purchase transaction in the accounts payable ledger
A B D. REQUIRED: IDENTIFY THE ASSERTION[S] RELATED TO EACH AUDIT PROCEDURE ASSERTION[S] E=existence C-Completeness A=Accuracy Cl=Classification Cu=Cutoff V=Valuation RO-Rights & Obligations Procedure A Compare sales invoices with customer purchase orders B Compare selected items on the inventory list with the physical inventory.
4. Indicate which department-accounts payable, cash disbursements, data processing, purchasing, inventory, or receiving- has ownership over the following files and registers: a. open purchase order file b. purchase requisition file C. open purchase requisition file d. closed purchase requisition file e. inventory f. closed purchase order file g. valid vendor file
Which of the following is an internal control measure regarding purchases made by a company during a fiscal year? a. The person authorizing purchase orders is the person filling purchase requisitions. b. Payment to creditors is authorized only after the purchase invoice data is verified against the receiving report and purchase order. c. The person authorizing payment is the person writing the payment checks. d. Payment to creditors is authorized only after the purchase invoice data is verified against the inventory levels existing on the ☐ date of the payment.
Identify the document or record used in the expenditure cycle based on the description set out below. a. establishes formal means of recording and controlling acquisitions; includes a cover sheet and a package of relevant documentsb. indicates a reduction in the amount owed to a vendor because of returned goods or an allowance grantedc. a listing of the amount owed to each vendor at a point in timed. specifies details of an acquisition transaction and amount of money owed to the vendor for an acquisitionSelect your answer from the following list of documents and records:accounts payable master fileaccounts payable trial balanceacquisitions journalcash disbursements journalcheckdebit memopurchase orderpurchase requisitionreceiving reportvendor's invoicevendor's statementvoucher
The tests of controls for inventory records would include the following procedures.A. Existence.B. Rights.C. Completeness.D. Valuation.E. Presentation and disclosure.For each of the procedures, choose the letter of the correct PCAOB assertion(s). Only one letter per procedure should be used._______ 1. Trace a sample of sales invoices to perpetual inventory record entry of issue._______ 2. Select a sample of inventory item from perpetual records and vouch additions to receiving reports._______ 3. Select a sample of shipping documents and review the accounting summary of the quantities and prices._______ 4. Trace posting of sample of sales invoices to amounts in general ledger._______ 5. Review the appropriateness of standard costs to price inventory issues and cost of goods sold