ass2

Front

For each process, select whether it represents a strength or a deficiency of the system:
1. The warehouse department agrees the receipt of goods from suppliers to a copy of the purchase order and confirms the quantity and quality of the goods received and signs the goods received notes (GRNs) to evidence the checks
2. Supplier statement reconciliations are undertaken on a monthly basis and these are reviewed by the financial controller

Back

1. Strength-2. Strength

Front

Which of the following is not a test of control?
- Inspection of purchase order documentation to confirm that it has been authorised
- Review of monthly bank reconciliations performed by the audit client
- Examination of purchase invoices for evidence of mathematical accuracy checks
- Agreement of the cost of non-current asset additions to purchase documentation.

Back

Agreement of the cost of non-current asset additions to purchase documentation.

Front

Which one of the following internal controls is most likely to prevent fictitious employees from being added to the payroll? Payroll standing data periodically printed out and checked on a line-by-line basis to independently held employee details, Use of hierarchical passwords over standing data files, Pre-authorisation of all amendments to payroll standing data by an independent official, Supervision of the wages payout by an independent official

Back

Use of hierarchical passwords over standing data files

Front

Which one of the following control procedures is most likely to ensure that customers are invoiced for goods despatched? Options: Use of pre-printed sequentially numbered sales order documentation, Matching of sales orders with despatch records, Matching of despatch records with sales invoices, Requiring customers to sign for goods received

Back

Matching of despatch records with sales invoices

Front

Which of the following is not controls activities over the sales system? Segregation of duties, Authorization of sales transactions, Physical controls over inventory

Back

Sales commission structure

Front

Which one of the following controls would have prevented the risk that the entity has been paying invoices in respect of goods which had been returned as faulty before acceptance?
Options:
Comparison of supplier statements with payables ledger accounts,
Date stamping purchase invoices on receipt,
Matching of purchase invoices with goods received records,
Matching of purchase invoices with orders

Back

Matching of purchase invoices with goods received records

Front

One of the control objectives of the sales system of B Co is to ensure that goods and services are sold to credit-worthy customers. Which control activity would assist B Co in achieving this objective? Options: All sales orders are based on authorised price lists., Credit limits are checked before sales orders are accepted., Överdue debts are chased each month by the credit controller., The aged-debt listing is reviewed by the finance director on a monthly basis

Back

Credit limits are checked before sales orders are accepted.

Front

Which of the following best describes segregation of duties in the sales system? Options: Having one employee responsible for all sales-related tasks, Assigning different employees to handle sales, billing, and cash receipts, Allowing multiple employees access to customer data, Consolidating all sales functions under the finance department

Back

Assigning different employees to handle sales, billing, and cash receipts

Front

Which control measure is designed to prevent unauthorized sales transactions? Options: Reconciliation of sales records, Sales order approval process, Periodic inventory counts, Customer credit checks

Back

Sales order approval process

Front

Which internal control helps ensure that sales are recorded accurately and completely? Options: Regular inventory audits, Implementation of a customer relationship management (CRM) system, Reconciliation of sales invoices with shipping documents, Offering discounts to encourage early payment

Back

Reconciliation of sales invoices with shipping documents