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"Recorded vouchers (accounts payable entries) in the voucher register (e.g., purchases journal) supported by completed voucher documentation" is a specific example of which monitoring assertion?A. Category.B. Occurrence.C. Completeness.D. Cutoff.
"All purchase orders are supported by requisitions from proper persons" is a particular instance of which monitoring assertion?A. Occurrence.B. Completeness.C. Cutoff.D. Group.
Cash disbursements are authorized byA. Acquisition orders.B. Invoices.C. Receiving reports.D. A finish voucher package.
For the copy of the purchase order that goes to the receiving department, it is best toA. Leave off the description of the items ordered.B. Leave off the quantity of the products ordered.C. Leave off the name of the merchant.D. Have the receiving department forward all copies of the purchase order to accounts payable.
Vouchers must be stamped PAID toA. Proccasion duplicate payment.B. Geneprice a brand-new purchase order.C. Indicate posting in the voucher register.D. Facilitate preparation of the financial institution reconciliation.
A voucher package is provided toA. Document receipt of inventory.B. Document completion of solutions.C. Document a purchase contract.D. Provide a resource document for recording the purchase of a great or service.
An auditor traced a sample of purchase orders and also the related receiving reports to the purchases journal. The function of this substantive audit procedure the majority of most likely was toA. Identify commonly huge purchases that should be investigated better.B. Verify that cash disbursements were for products actually obtained.C. Determine that purchases were correctly taped.D. Test whether payments were for items actually ordered.
The usual source for journal entries posted to the basic ledger to record the purchase of inventory isA. Sales invoices updated with cost data from the inventory records department.B. Acquisition invoices updated with expense information from the inventory documents department.C. Receiving reports updated through expense information from the accounts payable department.D. Vouchers payable journal from the accounts payable department.
Which of the following would certainly detect the understatement of a purchase discount?A. Verify the arithmetic accuracy of the purchases journal.B. Compare purchase disbursement records and checks through invoice terms.C. Compare apconfirmed purchase orders to receiving reports.D. Verify the receipt of items ordered and invoiced.
Which of the following instances suggests a potential material weakness in interior manage over acquisition and expenditure?A. Acquisition orders are not ready for services gained straight under authorization of department heads.B. The exact same perboy authorizes voucher packeras and signs checks.C. Unacceptable products are not booked on receiving reports.D. The same person signs checks and stamps vouchers PAID.
Which of the complying with client control activities is not usually perdeveloped in the vouchers payable (accounts payable) department?A. Determining the mathematical accuracy of the vendors" invoices.B. Writing checks for the treasurer"s signature to take advantage of purchase discounts.C. Controlling the mailing of the check and remittance advice.D. Checking the prices on the vendor"s invoice.
When auditing merchandise inventory at year-end, the auditor percreates a purchase cutoff test to achieve evidence thatA. All products purchased before year-finish are got before the physical inventory count.B. No goods held on consignment for customers are included in the inventory balance.C. No goods oboffered throughout the physical count are pledged or offered.D. All products owned at year-finish are contained in the inventory balance.
Auditors may conclude that depreciation charges are also little by notingA. Insured worths a lot larger than book values.B. Large numbers of totally depreciated assets.C. Frequent trade-ins of relatively new assets.D. Large and regular losses on assets retired.
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The auditor determined to test accounts payable by sending open-ended (blank) confirmations to selected sellers. The auditor"s ideal strategy in choosing the vendor accounts to confirm is toA. Select merchant accounts with big balances.B. Select seller accounts at random in order to use a statistical sampling procedure.C. Select vendor accounts based on the number of purchases from sellers in the time of the year.D. Select vendor accounts that are past due.
Fundamental Financial Accounting Concepts10th EditionDanita Kelley, Gaile Moe, Gordon M Wardregulation, Jacqueline Berning