A furniture company ordered 84 tables from a supplier. The supplier accidentally sent only 48 tables, but the receiving department at the furniture company accepted the tables. The invoice was eventually received but was for the original 84 tables. The furniture companypaid the entire amount. Which of the following controls would have been least likely to have prevented this erroneous payment?a. The copy of the purchase order sent to the furniture company’s receiving department should not have shown an expected quantity.b. Personnel in the furniture company’s accounts payable department should compare the receiving report to the purchase invoice before creation of the voucher. c. Personnel in the furniture company’s cash disbursements department should compare the check that is prepared to all of the backup documentation.d. Personnel in the furniture company’s purchasing department should compare the purchase requisition with the purchase order

Which, if any, of the following situations represent improper segregation of functions?A. The billing department prepares the customers ‘invoices, and the AR department posts to thecustomers’ accounts.B The sales department approves sales credit memos as the result of product returns, and subsequentadjustments to the customer accounts are performed by the AR department.C The shipping department ships goods that have been retrieved from stock by warehouse personnel.D. The general accounting department posts to the general ledger accounts after receiving journalvouchers that are prepared by the billing department.

h-00

Which of the following procedures is least effective in preventing the purchasing agent from receiving kickbacks?   a. Prenumbering and periodically accounting for all purchase orders     b. Requiring purchasing agents to disclose any financial investments in potential suppliers     c. Requiring approval of all purchase orders     d. Maintaining a list of approved vendors and requiring all purchases to be made from vendors on that list

Abbe Co. is a small merchandising company with a manual accounting system. An investigation revealed that in spite of a sufficient bank balance, a significant amount of available cash discounts had been lost because of failure to make timely payments. In addition, it was discovered that the invoices for several purchases had been paid twice. Outline procedures for the payment of vendors’ invoices so that the possibilities of losing available cash discounts and of paying an invoice a second time will be minimized.

In response to the six primary physical control weaknesses that have been identified, make recommendations (one for each bullet). The purchase transaction should not be authorized by the purchases. The inspection of receiving items should be on basis of blind copy of purchase order provided not by the packing slip. The inventory subsidiary ledger is updated by the inventory control. The recording in accounts payable subsidiary ledger is without the supporting documents as recorded only on invoice receiving. The journal vouchers and summary reports from accounts payable department, cash disbursement system and inventory control should be received by general ledger department. The cash disbursements journal and check register are not in use.

For effective internal control, the accounts payable department generally should(1) stamp, perforate, or otherwise cancel supporting documentation after paymentis mailed.(2) ascertain that each requisition is approved as to price, quantity, and quality byan authorized employee.(3) omit information about the quantity ordered on the copy of the purchase orderforwarded to the receiving department prior to receipt of goods.(4) establish the agreement of the vendor’s invoice with the receiving report andpurchase order

In the evaluation of sales transaction processing and control design in the following information:(a)identify two or three potential weaknesses. breifly explain the potential mistatement, recommended correction and possible weakness of all two or three potential weaknesses identified. ORDER APPROVAL In Marco Appliance Inc., Every few minutes (immediately if things are slow), one of the salesclerks hand-carries the pending requisitions to Dakota Amalia, the controller. The secretary presents them to Ms. Amalia who approves them either immediately, based on first-hand knowledge of the customer's credit record, or after reviewing the customer's account record on her PC. Ms. Amalia initials the requisition to indicate approval of the sale and enters an approval for the requisition in the accounting system. When Ms. Amalia enters her approval code, the system creates and prints three copies of a sales order form; assigns a sequential number to it; and moves the sales order record in the…

The sales of $2,000 made to Shanaya has been posted to the Sara’s account by mistake. It happened because a customer account number was incorrectly entered into the system. Explain what internal control procedure(s) would provide protection against this threat in future?

Able, an accounts payable supervisor for ABC Company, bought supplies for a company he owned on the side. Able entered vouchers in ABC Company’s accounts payable system for the cost of the supplies. Checks were cut to pay for these unauthorized expenses during normal daily check runs. The goods ordered were drop-shipped to a location where Able could collect them. This is an example of: a. An expense reimbursement scheme b. A commission scheme c. A billing scheme d. An invoice kickback scheme