AUDITING LL W/ CONNECT <C>
11th Edition
ISBN: 9781307416268
Author: MESSIER
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 11, Problem 11.17MCQ
To determine
Concept Introduction:
Internal controls are policies and procedures defined by the management to ensure the smooth functioning of the business processes. Internal controls ensure the complete and correct accounting and safeguards to the assets.
To choose: the correct option.
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Students have asked these similar questions
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
1. Please explain whether the item is an example of IPE from a transaction process, and 2. Please explain why or why not in some level of detail: Item IPE? Why or why not? A. A payroll exception report prepared by ADP B. A
report containing new vendors approved by the purchasing department C. An unpaid vendor invoice D. A list of product liability claims from customers E. The allocation of overhead to various products in production F.
Warranty conditions provided to customers on sales contracts G. The bank reconciliation prepared by the Company's bank
Which of the following is Appraisal cost?
A. Recalls and warranty repairs
B. Line Inspection and procedure verification
C. Training to employees
Chapter 11 Solutions
AUDITING LL W/ CONNECT <C>
Ch. 11 - Prob. 11.1RQCh. 11 - Prob. 11.2RQCh. 11 - Prob. 11.3RQCh. 11 - Prob. 11.4RQCh. 11 - Prob. 11.5RQCh. 11 - Prob. 11.6RQCh. 11 - Prob. 11.7RQCh. 11 - Prob. 11.8RQCh. 11 - Prob. 11.9RQCh. 11 - Prob. 11.10RQ
Ch. 11 - Prob. 11.11RQCh. 11 - Prob. 11.12RQCh. 11 - Prob. 11.13MCQCh. 11 - Prob. 11.14MCQCh. 11 - Prob. 11.15MCQCh. 11 - Prob. 11.16MCQCh. 11 - Prob. 11.17MCQCh. 11 - Prob. 11.18MCQCh. 11 - Prob. 11.19MCQCh. 11 - Prob. 11.20MCQCh. 11 - Prob. 11.21MCQCh. 11 - Prob. 11.22MCQCh. 11 - Prob. 11.23MCQCh. 11 - Prob. 11.24PCh. 11 - Prob. 11.25PCh. 11 - Prob. 11.26PCh. 11 - Prob. 11.27PCh. 11 - Prob. 11.28PCh. 11 - Prob. 11.29PCh. 11 - Prob. 11.30P
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- Answer the following questions. a. Which department is responsible for initiating the purchase of materials? b. What is the name of the document generated by the department identified in (a) above? c. Typically, multiple copies of a purchase order are prepared. One copy should go to the vendor, and one is retained in the purchasing department. To achieve proper control, which other departments should receive copies of the purchase order? d. What documents does the accounts payable clerk review before setting up a liability? e. Which document transfers responsibility for goods sold to a common carrier?arrow_forwardWhen aninventory itemfalls to the recorder point, a purchase requisition is automatically generated and printed on the terminal in the purchasing department. The purchasing clerk select suppliers and prepare a purchase order. One copy of the purchase order is sent to the supplier and another copy is sent to the receiving department. The purchasing clerk then adds a record to the open/closed purchase order file through an update program in the data processing department.When the receiving clerk receivesthe delivery from the supplier, the clerkreconciles the items with the packing slip and the purchasing order. After the reconciliation, the receiving clerk prepares a hard-copy receiving report recording the quantity and quality of the goods received. One copy of the receiving report accompaniesthe items to the warehouse and another copy is filed in the receiving department. Using the department terminal, the receiving clerk adds a record to the digital receiving report file. The system…arrow_forwardDescribe the data flow in the buying process that begins when the purchasing organization sends a check to a vendor to settle an invoice for goods bought.arrow_forward
- In a good internal control system, which of the following sets of documents is required for proper approval of a payment to a supplier? A. a journal entry, a supplier invoice, and a description of the goods being purchased B. a supplier invoice, a bill of lading, and the supplier's financial statements C. a purchase order, a journal entry, and a price catalog D. a receiving report, an invoice, and a purchase orderarrow_forwardWhich of the following will be the most appropriate test to determine wherether purchase orders are being processed on a timely basis? a. Determine the dates of unpaid accounts payable invoices. b.Compare dates of selected purchase orders with those of purchase requisitions c.select a block of used purchase order numbers and account for all number in the block d. discuss proccessing procedures with operating personnel and observe actual processing of purchases.arrow_forwardRead the following statements carefully: Recalculate the allowance of accounts receivables. Vouch sales journal entries to sales invoices. Inspect the Bank statement in the client’s file. Trace sales invoices to accounting receivable ledger. Ask the payroll department to make a report about the calculating criteria of the overtime. Inspect the disclosure of inventories in the financial statements. Ask management about inventories the client has a legal title on it. Observe that Inventory quantities include all products, materials, and supplies on hand. Instructions: 1-Indicate the type of Procedure for each statement. 2-Indicate the type of Evidence for each statement. 3-Indicate the type of Assertion for each statement. 4-Indicate the source of Document for each statement (obtained directly by the auditor, external circulated internally, internally circulated externally, entirely internal). No. Type of Procedure Type of Evidence Type of Assertion The source of…arrow_forward
- 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 invoicearrow_forwardYou are tasked to perform cut-off procedures for expenses and its related payable. In testing the completeness/cut-off assertion, what document would you most likely inspect? A. Vendor invoice register 15 days before and 15 days after report date. B. Cash disbursement journal 15 days before and 15 days after report date. C. Accounts payabie subsidiary ledger. D. Purchase journal 15 days before and 15 days after report date.arrow_forwardHi! What is the data flow diagram of this process? Vendors send invoices to the AP department where they are reviewed and approved for payment. Once approved, the invoice and a cash disbursement voucher are sent to the cash disbursement department, where a check is prepared and sent to the vendor. A copy of the check, the invoice, and the voucher are returned to the AP department and filed.arrow_forward
- Draw the flow chart for the following - manual based(NOTE: add files, data store and departments which all time should be included even not in the following process, also don’t add any more process not in the scenario , your drawing should be clear )The Process: Vendors send invoices to the AP department where they are reviewed and approved for payment. Once approved, the invoice and a cash disbursement voucher are sent to the cash disbursement department, where a check is prepared and sent to the vendor. A copy of the check, the invoice, and the voucher are returned to the AP department and filed.arrow_forwardDiscuss the risks depicted by the fixed asset system flowchart. Describe the internal control improvements to the system that are needed to reduce these risks.arrow_forwardPlease do not give image formatarrow_forward
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