Which of the following questions included in an internal control questionnaire would evaluate the valuation objective...
Which of the following questions included in an internal control questionnaire would evaluate the valuation objective of revenues?
Multiple Choice
A.Is customer credit approved before orders are shipped?
B.Are shipping documents required before a customer invoice is sent?
C.Are sales orders prenumbered?
D.Are payments received from the customer deposited in the bank in a timely manner?
Homework Answers
Dear student...Thank you for using HomeworkLib....answer is A.Is customer credit approved before orders are shipped?
Is customer credit approved before orders are shipped would evaluate the valuation objective of revenues
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Which of the following questions included in an internal control
questionnaire would evaluate the valuation objective...
Which of the following procedures most likely represents an internal control designed to reduce the risk...
Which of the following procedures most likely represents an internal control designed to reduce the risk of errors in the billing process? 1. Requiring customers that purchase on account to be approved by the credit department. 2. Comparing control totals for shipping documents with corresponding totals for sales invoices. 3. Matching receiving documents with approved sales orders before invoice preparation. 4. Reconciling the control totals for sales invoices with the accounts receivable subsidiary ledger.
Requirement b. For each control, state which transaction-related audit objective(s) is (are) applicable. Transaction-related Audit Internal...
Requirement b. For each control, state which transaction-related audit objective(s) is (are) applicable. Transaction-related Audit Internal Controls Objective(s) 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Accuracy Dates on receiving reports are compared with vendors' invoices before entry into the 3. acquisitions journal. Classification Completeness 4. Account classifications are reviewed by someone other than the preparer. Occurrence 5. Vendors' invoices are recalculated before...
vided the procedure (1-9) the auditor could implement to test the operating electiveness of the Internal...
vided the procedure (1-9) the auditor could implement to test the operating electiveness of the Internal control Select from the option list provided the procedure (1-9) the following situations. Each choice may be used once, more than once, or not at all. 1. Match prenumbered shipping documents with entries in the sales journal. 2. Trace sales invoices to account receivable subsidiary ledger 3. Vouch bill of lading file to approved sales invoices. 4. Observe client comparing receiving quantities, and inspect...
QUESTION 2 The following is a list of 10 control plans and ten system failures that...
QUESTION 2 The following is a list of 10 control plans and ten system failures that have control implications. Match the letter from the list of the best control plan to prevent the system failure from occurring. A letter should be used only once I can approve all customer orders. a. b. Any correcting entries to be made by the customer service representative are done at a later time Procedures for rejected inputs rather than as the data is input...
14-26 (Objective 14-3) The following are selected transaction-related audit objectives and audit procedures for sales transactions:...
14-26 (Objective 14-3) The following are selected transaction-related audit objectives and audit procedures for sales transactions: Transaction-Related Audit Objectives 1. Recorded sales exist. 2. Existing sales are recorded. 3. Sales transactions are correctly included in the accounts receivable master file and are correctly summarized. Procedures 1. Trace a sample of shipping documents to related duplicate sales invoices and the sales journal to make sure that the shipment was billed. 2. Examine a sample of duplicate sales invoices to determine whether...
Format Tools Table Window Help Internal Control (3) Saved to my MARS Mailings Review View Tell...
Format Tools Table Window Help Internal Control (3) Saved to my MARS Mailings Review View Tell me el Aalbode Aabende References A Аа А A AaBbCcDc ABCDE Aa Heading 2 Normal No Spacing T |t) After comparing cash register tapes with inventory records, the accountant for Teri's Treats for Tots is concerned that someone at one of the stores is not recording some of that store's cash sales and is stealing the cash from the unreported sales. a) Explain why...
1.Which of the following controls would provide the most assurance to management that recorded sales actually...
1.Which of the following controls would provide the most assurance to management that recorded sales actually occurred? A) Statements are sent to customers at the end of each month, and customer complaints are investigated B) Responsibilities for recording a customer order and shipping the products are segregated C) A credit sale is recorded only after a credit check is performed D) Shipping documents are prepared for every shipment made and filed in the shipping department 44. Which of the following...
Each of the points listed next represents an internal control that may be implemented within a...
Each of the points listed next represents an internal control that may be implemented within a company’s accounting information system to reduce various risks. For each point, identify the appropriate business process (revenue, expenditure, conversion, administrative). (Hint: Review study objective 1,2,7 in Chapter 1). Customer credit must be authorized before a business transaction takes place. An authorized price list of goods for sale is provided. A shipping report is prepared for all shipments of goods so that customers may be...
Cloud 9 - Continuing Case Sharon Gallagher and Josh Thomas have assessed the internal controls at...
Cloud 9 - Continuing Case Sharon Gallagher and Josh Thomas have assessed the internal controls at Cloud 9 as being effective at an entity level. This means that, at a high level, the company demonstrates an environment where potential material misstatements are prevented or detected. Answer the following questions based on the information presented for Cloud 9 in the appendix to this text and the current and earlier chapters. You should also consider your answers to the case-study questions in...
11-32 (Objective 11-3) The following is the description of sales and cash receipts for the Lady’s...
11-32 (Objective 11-3) The
following is the description of sales and cash receipts for the
Lady’s Fashion Fair, a retail store dealing in expensive women’s
clothing. Sales are mainly on account using the store’s own billing
rather than credit cards; however, some customers prefer to pay
cash.
Salesclerks assist customers and then direct them to the central
desk for payment. The computer used to enter sales is operated by
the store supervisor, who has been employed for 10 years by...
Requirement b. For each control, state which transaction-related audit objective(s) is (are) applicable. Transaction-related Audit Internal Controls Objective(s) 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Accuracy Dates on receiving reports are compared with vendors' invoices before entry into the 3. acquisitions journal. Classification Completeness 4. Account classifications are reviewed by someone other than the preparer. Occurrence 5. Vendors' invoices are recalculated before...
vided the procedure (1-9) the auditor could implement to test the operating electiveness of the Internal control Select from the option list provided the procedure (1-9) the following situations. Each choice may be used once, more than once, or not at all. 1. Match prenumbered shipping documents with entries in the sales journal. 2. Trace sales invoices to account receivable subsidiary ledger 3. Vouch bill of lading file to approved sales invoices. 4. Observe client comparing receiving quantities, and inspect...
QUESTION 2 The following is a list of 10 control plans and ten system failures that have control implications. Match the letter from the list of the best control plan to prevent the system failure from occurring. A letter should be used only once I can approve all customer orders. a. b. Any correcting entries to be made by the customer service representative are done at a later time Procedures for rejected inputs rather than as the data is input...
Format Tools Table Window Help Internal Control (3) Saved to my MARS Mailings Review View Tell me el Aalbode Aabende References A Аа А A AaBbCcDc ABCDE Aa Heading 2 Normal No Spacing T |t) After comparing cash register tapes with inventory records, the accountant for Teri's Treats for Tots is concerned that someone at one of the stores is not recording some of that store's cash sales and is stealing the cash from the unreported sales. a) Explain why...
11-32 (Objective 11-3) The
following is the description of sales and cash receipts for the
Lady’s Fashion Fair, a retail store dealing in expensive women’s
clothing. Sales are mainly on account using the store’s own billing
rather than credit cards; however, some customers prefer to pay
cash.
Salesclerks assist customers and then direct them to the central
desk for payment. The computer used to enter sales is operated by
the store supervisor, who has been employed for 10 years by...
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