1. Threats - Incomplete, invalid order, un-collectible accounts and loss of customers related to Answer: ....... 2. Where the employees are hired, trained, compensated, evaluated, promoted and terminated. Answer: .......... 3. In the accounting system detect error and update are commonly used as Answer: ........

1. Threats - Incomplete, invalid order, un-collectible accounts and loss of customers related to Answer: ....... 2. Where the employees are hired, trained, compensated, evaluated, promoted and terminated. Answer: .......... 3. In the accounting system detect error and update are commonly used as Answer: ........

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

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 11CYBK

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Which of the following is false about accounting information systems? A. They provide reports that people analyze. B. They prevent errors and stop employees from stealing inventory. C. They are designed to gather data about the companys transactions. D. They consist of processes that involve input of data from source documents, processing, output, and storage.
An internal control system where obligations by the company should be liquidated only by checks. A. Voucher system B. Current account c. Check system d. Outstanding check
Normally revenue is recognized when: A. the customer order is receivedB. the customer order is accompanied by a checkC. the transaction results to recording an accounts receivableD. when the title of the goods changes
Which of the following is false about accounting information systems?A. They provide reports that people analyze.B. They prevent errors and stop employees from stealing inventory.C. They are designed to gather data about the company’s transactions.D. They consist of processes that involve input of data from source documents, processing, output, andstorage.
Which of the following are examples of the misappropriation of assets? O A. An employee theft of inventory. O B. A kickback scheme in the purchasing function. OC. An employee overstates an expense reimbursement request after a company trip. O D. all of the above Click to select your answer. 11:59pm 99+ ch
A backlog in recording transactions is an example of a warning sign from the accounting system. True False
5. Who controls user access and monitors user activity? A. Individual users B. Master Supervisor C. Comptroller D. Master Administrator 6. What account type is considered a liability? A. Fixed Assets B. Accounts Receivable C. Bank D. Accounts Payable 7. Opening balances are entered: A. via the Gear menu B. on the day the expenses were incurred C. on the Chart of Accounts D. as a Journal Entry or directly into the account register
Choose only one answer as well as state their reasons/rationale for the answer chosen. A customer entered the wrong account number on the memo line of the check mailed to the company. Consequently, another customer’s account was credited for that payment. The most effective way to prevent such problems would be to use:a. Turnaround documentsb. A validity check of customer account numbersc. Closed loop verificationd. Check digit verification of customer account numbers
1. SEGREGATION OF FUNCTIONS to the AR department, which adjusts the customer Which, if any, of the following situations represents improper segregation of functions? Explain your accounts to reflect the return. answer. a. The billing department prepares the customers' invoices and records the sale in the sales journal. b. Mail room clerk opens cash receipts envelopes from customers and also prepares the remittance list. c. Accounting clerk receives journal vouchers from various departments and also posts to the GL accounts. d. The sales department approves sales credit memos as the result of product returns and forwards these
1. Which of the following is not an advantage of computerized accounting system? a. Data is entered only once in computerized accounting systems b. Computerized accounting systems provide up-to-date information c. Computerized accounting systems eliminate entering of transaction information d. Computerized accounting systems eliminate many errors resulting from human intervention 2. Which of the following is incorrect regarding subsidiary ledger? a. The accounts receivable ledger is a common subsidiary ledger b. An advantage of the subsidiary ledger is that it permits a division of labor in posting c. The purchases ledger is a common subsidiary ledger for creditor accounts d. A subsidiary ledger is a group of accounts with common characteristics 3. At the beginning of the month, the accounts receivable subsidiary ledger showed balances for Orange $5,000 and Mango $8,000. During the month, credit sales were made to Orange $6,000, Mango $4,500, and Apple $6,500. Cash was collected on…
LO 1-3 1.63 Management Assertions. Your audit manager has asked you to explain the PCAOB assertions by using an account on the balance sheet at your audit client. For the accounts receivable account, please define each of the PCAOB assertions, using the accounts receivable account as a way to illustrate each assertion. You are encouraged to reference Exhibit 1.4 to help you answer this question.
3.Ledger or posting contributes to the recording process because it discloses the complete effect of a transaction, provides a chronological record of transactions, and helps to prevent or locate errors because the debit and credit amounts can be readily compared true false 4.Although primary users of Financial Accounting information are the external users and for Managerial Accounting are the internal users; both branches of accounting need to be audited by CPAS true false 5. Posting helps to transfer the journal entries to ledger accounts which are comprised of the entire group of accounts maintained by a company. True False