Term
Which of the following functions should be segregated?
- Authorizing credit and determining reorder quantities.
- Opening the mail and recording cash receipts in the journal.
- Providing information on inventory levels and reconciling the bank statement.
- Shipping goods and preparing the bill of lading. |
|
Definition
| Opening the mail and recording cash receipts in the journal |
|
|
Term
| In a cash collection system with proper controls, the ______ function, responsible or reporting to the_______, is separate and distinct from the cash handling activities. |
|
Definition
| Accounts receivable, controller. |
|
|
Term
| Which document triggers the update on the inventory subsidiary ledger? |
|
Definition
|
|
Term
| What is the normal procedure for new customers or customers making a purchase that causes their credit limit to be exceeded? |
|
Definition
| specific approval must be granted by the credit manager. |
|
|
Term
| which documents are prepared by the sales department? |
|
Definition
| Stock release, shipping notice, packing slip |
|
|
Term
| which document is not prepared by the sales department? |
|
Definition
|
|
Term
| which function should the billing department perform? |
|
Definition
| record the sales in the sales journal, send the ledger copy of the sales order to accounts receivable, send the stock release document to inventory control. |
|
|
Term
| which function should the billing department not perform? |
|
Definition
| send the stock release document and the shipping notice to the billing department as proof of shipment. |
|
|
Term
| Which statement indicated a weak internal control structure? |
|
Definition
| the AR clerk authorizes the write off of bad debts. |
|
|
Term
| To ensure proper separation of duties, the _______ makes decisions concerning issuance of credit memos. |
|
Definition
|
|
Term
| During the sales order entry process, a ____ is performed to verfiy that each transaction record contains all appropriate data items. |
|
Definition
|
|
Term
| The credit manager reports to the _____ and the treasurer reports to the ______ |
|
Definition
|
|
Term
| The revenue cycle consists of two major subsytems: |
|
Definition
1) the sales order processing subsystem
2) the cash receipts subsystem. |
|
|
Term
| three processes that constitute the revenue cycle are |
|
Definition
| Sales order procedures, sales return procedures, and cash recepits procedures. |
|
|
Term
| What are the sales order procedures? |
|
Definition
| Recieve order, check credit, pick goods, ship goods, bill customer, update inventory record, update AR ledger, Post to general ledger |
|
|
Term
| Which document helps to ensure that the receiving clerks actually count the number of goods recieved? |
|
Definition
| blind copy of purchase order |
|
|
Term
| There are several threats that are associated with the process and activity of receiving and storing goods. Identify one of these threats below. |
|
Definition
|
|
Term
|
Definition
| a document formally requesting a vendor to sell a certain product at a certain price, a request for delivery of certain items and quantities, a contract between the buyer and vendor once accepted by the vendor |
|
|
Term
| What task should the cash disbursements clerk not perform? |
|
Definition
|
|
Term
| There is a threat of paying an invoice twice. what is an applicable control that may help mitigate this threat? |
|
Definition
| payment should never be authrozied for a photocopy of an invoice. |
|
|
Term
| Which documents would an auditor most likely choose to examine closely to ascertain that all expenditures inccured during the accounting period have been recorded as a liability? |
|
Definition
|
|
Term
| Which of the following is true about cash disbursement? |
|
Definition
| cash disbursements is a treasury function |
|
|
Term
| A standing order to purchase specified items at a designated price, from a particular suppler for a set period of time is called a |
|
Definition
|
|
Term
| To accomplish the objectives set forth in the expenditure cycle, a number of key management decisions must be addressed. Which of the decisions below is not ordinarily found as part of the expenditure cycle? |
|
Definition
| what are optimal prices for each product or service? |
|
|
Term
| The major cost driver in the purchasing function is: |
|
Definition
| the number of purchase orders processed. |
|
|
Term
| The department responsible for approving pay rate changes is: |
|
Definition
|
|
Term
| Objectives of the fixed asset system include: |
|
Definition
| recording depreciation expense, computing gain or loss on the disposal of fixed assets, authorizing the acquistion of fixed assets |
|
|
Term
| Objectives of the fixed asset system do not include: |
|
Definition
| maintaining a record of the fair market value of all fixed assets. |
|
|
Term
| the document that captures the total amount of time that individual workers spend on each production job is called a: |
|
Definition
|
|
Term
|
Definition
| allocates the cost of the asset over its useful life? |
|
|
Term
| depreciation records includ all of the following information about fixed assets except the |
|
Definition
| economic benefit of of purchasing the asset |
|
|
Term
| Which of the following is not a characteristic of the fixed asset system? |
|
Definition
| acquisitions are routine transactions requiring general authorization. |
|
|
Term
| What transaction is not processed in the fixed asset system? |
|
Definition
| purchase of raw materials? |
|
|
Term
| Which control is not part of the fixed asset system? |
|
Definition
| developement of an economic order quantity model |
|
|
Term
| An important reconciliation in the payroll system is when |
|
Definition
| the general ledger department compares the labor distribution summary from cost accounting to the disbursement voucher from accounts payable. |
|
|
Term
| which function should distribute paychecks |
|
Definition
|
|
Term
| which statement below describes a profit center? |
|
Definition
| the authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply |
|
|
Term
|
Definition
| is a table specifying which portions of the system users are permitted to access |
|
|
Term
| Sequentially pre numbered forms is an example of |
|
Definition
|
|
Term
| Restricting access of users to specific portions of the system as well as specific tasks, is |
|
Definition
|
|
Term
| Modest expectations investment services allows customers to manage their investments over the internet. If customers attempt to sell more shares of a stock than they have in their account, an error message is displayed. This is an example of a : |
|
Definition
|
|
Term
| When each employee is provided with a name badge and a photo and a chip that is used to gain entry into the facility, this is an example of a : |
|
Definition
|
|
Term
| Which of the following is not a requirement of effective passwords? |
|
Definition
| passwords should be no more than 8 characters long. |
|
|
Term
| Which of the following is not a requirement of effective passwords. |
|
Definition
| passwords should not be words found in dictionaries, passwords should be changed at regular intervals, passwords should contain a mixture of upper and lower case letters |
|
|
Term
| If the time an attacker takes to break through the organizations preventative controls is greater than the sum of the time required to detect the attack and the time required to respond to the attack, then security is |
|
Definition
|
|
Term
| a firm hires another firm to compromise its computer network, this is called a |
|
Definition
|
|
Term
| Form design is an example of a : |
|
Definition
|
|
Term
| Which of the following is the foundation of systems reliability |
|
Definition
|
|
