The primary objective of internal controls in the expenditure cycle is to: A. Ensure the accuracy and completeness of financial transactions B. Strea
The primary objective of internal controls in the expenditure cycle is to: A. Ensure the accuracy and completeness of financial transactions B. Strea
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1. The primary objective of internal controls in the expenditure cycle is to:
A. Ensure the accuracy and completeness of financial transactions
B. Streamline the procurement process
C. Minimize the cost of purchases
D. Increase the speed of payment processing
2. An example of a preventive control in the expenditure cycle is:
A.Requiring management approval for large purchases
B. Regular inventory counts
C. Using firewalls and intrusion detection systems
D. Conducting vendor audits
3. Which of the following is an example of a processing control in the expenditure cycle?
A. Document sequencing
B. Reconciling the bank statement
C. Physical controls over inventory
D. Approval of vendor invoices
4. Purchase orders are used to initiate a payment in the disbursement cycle.True False
5. An automated approval workflow for payment processing eliminates the need for managerial oversight and authorization. True or False
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