AUD 3 Internal Control 14 - 1 Spending Cycle (PRAISE)

Question 1

Spending Cycle
(Purchases / Accounts Payable / Cash Disbursements)

The auditor should look for specific applications of the different control activities to the spending cycle.

Answer 1

Spending Cycle
(Purchases / Accounts Payable / Cash Disbursements)

The auditor should look for specific applications of the different control activities to the spending cycle.

Question 2

Spending Cycle

The auditor should look for specific applications of the different control activities to the sp___ing cycle.

Answer 2

Spending Cycle

The auditor should look for specific applications of the different control activities to the spending cycle.

Question 3

Spending Cycle

The auditor should look for specific ap_________s of the different control activities to the spending cycle.

Answer 3

Spending Cycle

The auditor should look for specific applications of the different control activities to the spending cycle.

Question 4

Spending Cycle

The auditor should look for specific applications of the different co______ activities to the spending cycle.

Answer 4

Spending Cycle

The auditor should look for specific applications of the different control activities to the spending cycle.

Question 5

Spending Cycle

The au_____ should look for specific applications of the different control activities to the spending cycle.

Answer 5

Spending Cycle

The auditor should look for specific applications of the different control activities to the spending cycle.

Question 6

Spending Cycle

The auditor should look for specific applications of the different control activities to the spending cycle.

Commonly-tested examples of a____ing procedures used to understand the internal control structure related to spending include (PRAISE):

Answer 6

Spending Cycle

The auditor should look for specific applications of the different control activities to the spending cycle.

Commonly-tested examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):

Question 7

Spending Cycle

The auditor should look for specific applications of the different control activities to the spending cycle.

Commonly-tested examples of auditing pro______s used to understand the internal control structure related to spending include (PRAISE):

Answer 7

Spending Cycle

The auditor should look for specific applications of the different control activities to the spending cycle.

Commonly-tested examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):

Question 8

Spending Cycle

The auditor should look for specific applications of the different control activities to the spending cycle.

Commonly-tested examples of auditing procedures used to und_______ the internal control structure related to spending include (PRAISE):

Answer 8

Spending Cycle

The auditor should look for specific applications of the different control activities to the spending cycle.

Commonly-tested examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):

Question 9

Spending Cycle

The auditor should look for specific applications of the different control activities to the spending cycle.

Commonly-tested examples of auditing procedures used to understand the internal control st________ related to spending include (PRAISE):

Answer 9

Spending Cycle

The auditor should look for specific applications of the different control activities to the spending cycle.

Commonly-tested examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):

Question 10

Spending Cycle

The auditor should look for specific applications of the different control activities to the spending cycle.

Examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Evaluate performance

Answer 10

Spending Cycle

The auditor should look for specific applications of the different control activities to the spending cycle.

Examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Evaluate performance

Question 11

Spending Cycle

The auditor should look for specific applications of the different control activities to the spending cycle.

Examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):

• Physical con____s
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Evaluate performance

Answer 11

Spending Cycle

The auditor should look for specific applications of the different control activities to the spending cycle.

Examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Evaluate performance

Question 12

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Phy_____ controls
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Evaluate performance

Answer 12

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Evaluate performance

Question 13

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Re_______
• Authorization
• Independent checks
• Segregation of duties
• Evaluate performance

Answer 13

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Evaluate performance

Question 14

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Auth_________
• Independent checks
• Segregation of duties
• Evaluate performance

Answer 14

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Evaluate performance

Question 15

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent ch___s
• Segregation of duties
• Evaluate performance

Answer 15

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Evaluate performance

Question 16

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Authorization
• Ind_________ checks
• Segregation of duties
• Evaluate performance

Answer 16

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Evaluate performance

Question 17

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Se_________ of duties
• Evaluate performance

Answer 17

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Evaluate performance

Question 18

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Segregation of d___es
• Evaluate performance

Answer 18

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Evaluate performance

Question 19

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Eva_______ performance

Answer 19

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Evaluate performance

Question 20

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Evaluate perfo_______

Answer 20

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Evaluate performance

Question 21

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Evaluate performance

• Physical controls
– Verify that all goods are received by the receiving department and returns are shipped by the shipping department.

Answer 21

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls
• Recording
• Authorization
• Independent checks
• Segregation of duties
• Evaluate performance

• Physical controls
– Verify that all goods are received by the receiving department and returns are shipped by the shipping department.

Question 22

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls

– Verify that all goods are re____ed by the receiving department

Answer 22

Spending Cycle

Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):

• Physical controls

– Verify that all goods are received by the receiving department

Question 23

Spending Cycle
(PRAISE)

• Physical controls

– Verify that all goods are received by the re____ing department

Answer 23

Spending Cycle
(PRAISE)

• Physical controls

– Verify that all goods are received by the receiving department

Question 24

Spending Cycle
(PRAISE)

• Physical controls

– V____y that all goods are received by the receiving department

Answer 24

Spending Cycle
(PRAISE)

• Physical controls

– Verify that all goods are received by the receiving department

Question 25

Spending Cycle (PRAISE) • Physical controls – Verify that a__ goods are received by the receiving department

Answer 25

Spending Cycle (PRAISE) • Physical controls – Verify that all goods are received by the receiving department

Question 26

Spending Cycle (PRAISE) • Physical controls – Verify that all goods are received by the receiving de__________ and returns are shipped by the shipping department.

Answer 26

Spending Cycle (PRAISE) • Physical controls – Verify that all goods are received by the receiving department and returns are shipped by the shipping department.

Question 27

Spending Cycle (PRAISE) • Physical controls – Verify that all goods are received by the receiving department and returns are shipped by the shipping department.

Answer 27

Spending Cycle (PRAISE) • Physical controls – Verify that all goods are received by the receiving department and returns are shipped by the shipping department.

Question 28

Spending Cycle (PRAISE) • Physical controls – Verify that all goods are received by the receiving department and returns are sh___ed by the shipping department.

Answer 28

Spending Cycle (PRAISE) • Physical controls – Verify that all goods are received by the receiving department and returns are shipped by the shipping department.

Question 29

Spending Cycle (PRAISE) • Physical controls – Verify that all goods are received by the receiving department and returns are shipped by the sh___ing department.

Answer 29

Spending Cycle (PRAISE) • Physical controls – Verify that all goods are received by the receiving department and returns are shipped by the shipping department.

Question 30

Spending Cycle (PRAISE) • Phy_____ controls – Verify that all goods are received by the receiving department and returns are shipped by the shipping department.

Answer 30

Spending Cycle (PRAISE) • Physical controls – Verify that all goods are received by the receiving department and returns are shipped by the shipping department.

Question 31

Spending Cycle (PRAISE) • Physical con____s – Verify that all goods are received by the receiving department and returns are shipped by the shipping department.

Answer 31

Spending Cycle (PRAISE) • Physical controls – Verify that all goods are received by the receiving department and returns are shipped by the shipping department.

Question 32

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Physical controls – Verify that all goods are received by the receiving department and returns are shipped by the shipping department. • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Answer 32

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Physical controls – Verify that all goods are received by the receiving department and returns are shipped by the shipping department. • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Question 33

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Answer 33

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Question 34

Spending Cycle (PRAISE) * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Recording – Verify that re____ing reports are prepared for all goods received

Answer 34

Spending Cycle (PRAISE) * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Recording – Verify that receiving reports are prepared for all goods received

Question 35

Spending Cycle (PRAISE) • Recording – Verify that receiving re____s are prepared for all goods received

Answer 35

Spending Cycle (PRAISE) • Recording – Verify that receiving reports are prepared for all goods received

Question 36

Spending Cycle (PRAISE) • Recording – Verify that receiving reports are prepared for a__ goods received

Answer 36

Spending Cycle (PRAISE) • Recording – Verify that receiving reports are prepared for all goods received

Question 37

Spending Cycle (PRAISE) • Recording – V____y that receiving reports are prepared for all goods received

Answer 37

Spending Cycle (PRAISE) • Recording – Verify that receiving reports are prepared for all goods received

Question 38

Spending Cycle (PRAISE) • Recording – Verify that receiving reports are pr______d for all goods received and that debit memos are prepared for all goods that are returned.

Answer 38

Spending Cycle (PRAISE) • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Question 39

Spending Cycle (PRAISE) • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are pr______ed for all goods that are returned.

Answer 39

Spending Cycle (PRAISE) • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Question 40

Spending Cycle (PRAISE) • Recording – Verify that receiving reports are prepared for all goods received and that de__t memos are prepared for all goods that are returned.

Answer 40

Spending Cycle (PRAISE) • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Question 41

Spending Cycle (PRAISE) • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for a__ goods that are returned.

Answer 41

Spending Cycle (PRAISE) • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Question 42

Spending Cycle (PRAISE) • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are re____ed.

Answer 42

Spending Cycle (PRAISE) • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Question 43

Spending Cycle (PRAISE) • Re____ing – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Answer 43

Spending Cycle (PRAISE) • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Question 44

Spending Cycle (PRAISE) • Recording – Verify that receiving reports are prepared for all goods received and that debit m___s are prepared for all goods that are returned.

Answer 44

Spending Cycle (PRAISE) • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Question 45

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned. • Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.

Answer 45

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned. • Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.

Question 46

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.

Answer 46

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.

Question 47

Spending Cycle (PRAISE) * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Authorization – Select individual cancelled ch___s

Answer 47

Spending Cycle (PRAISE) * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Authorization – Select individual cancelled checks

Question 48

Spending Cycle (PRAISE) • Authorization – Select in_______al cancelled checks

Answer 48

Spending Cycle (PRAISE) • Authorization – Select individual cancelled checks

Question 49

Spending Cycle (PRAISE) • Authorization – Select individual ca_____ed checks

Answer 49

Spending Cycle (PRAISE) • Authorization – Select individual cancelled checks

Question 50

Spending Cycle (PRAISE) • Authorization – Select individual cancelled checks and vouch them to the purchase or___s,

Answer 50

Spending Cycle (PRAISE) • Authorization – Select individual cancelled checks and vouch them to the purchase orders,

Question 51

Spending Cycle (PRAISE) • Authorization – Select individual cancelled checks and vouch them to the purchase orders, re____ing reports,

Answer 51

Spending Cycle (PRAISE) • Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports,

Question 52

Spending Cycle (PRAISE) • Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor in_____s,

Answer 52

Spending Cycle (PRAISE) • Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices,

Question 53

Spending Cycle (PRAISE) • Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and pay____ vouchers.

Answer 53

Spending Cycle (PRAISE) • Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.

Question 54

Spending Cycle (PRAISE) • Authorization – S_____t individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.

Answer 54

Spending Cycle (PRAISE) • Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.

Question 55

Spending Cycle (PRAISE) • Authorization – Select individual cancelled checks and v____ them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.

Answer 55

Spending Cycle (PRAISE) • Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.

Question 56

Spending Cycle (PRAISE) • Auth________ – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.

Answer 56

Spending Cycle (PRAISE) • Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.

Question 57

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers. • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.

Answer 57

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers. • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.

Question 58

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.

Answer 58

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.

Question 59

Spending Cycle (PRAISE) * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Independent checks – Verify that the client periodically performs inventory c___ts

Answer 59

Spending Cycle (PRAISE) * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Independent checks – Verify that the client periodically performs inventory counts

Question 60

Spending Cycle (PRAISE) • Independent checks – Ve___y that the client periodically performs inventory counts

Answer 60

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs inventory counts

Question 61

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs in_____ry counts

Answer 61

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs inventory counts

Question 62

Spending Cycle (PRAISE) • Independent checks – Verify that the client pe_____ally performs inventory counts and reconciles amounts on hand to inventory records

Answer 62

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records

Question 63

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs inventory counts and reconciles am____s on hand to inventory records

Answer 63

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records

Question 64

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs inventory counts and re____iles amounts on hand to inventory records

Answer 64

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records

Question 65

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on h__d to inventory records

Answer 65

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records

Question 66

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory re____s so as to know when inventory has been lost or stolen.

Answer 66

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.

Question 67

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when in____ory has been lost or stolen.

Answer 67

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.

Question 68

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been l__t or stolen.

Answer 68

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.

Question 69

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or st__en.

Answer 69

Spending Cycle (PRAISE) • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.

Question 70

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen. • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Answer 70

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen. • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Question 71

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Answer 71

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Question 72

Spending Cycle (PRAISE) * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Segregation of duties – Use i___iry and observation

Answer 72

Spending Cycle (PRAISE) * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Segregation of duties – Use inquiry and observation

Question 73

Spending Cycle (PRAISE) • Segregation of duties – Use inquiry and ob_____tion

Answer 73

Spending Cycle (PRAISE) • Segregation of duties – Use inquiry and observation

Question 74

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to deter____ that there is a separation

Answer 74

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation

Question 75

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) auth_______ of purchases and payments,

Answer 75

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments,

Question 76

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) re____ing of purchase orders

Answer 76

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders

Question 77

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and p___ing to the purchase journal,

Answer 77

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal,

Question 78

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) cu___dy of inventory and checks for payment.

Answer 78

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Question 79

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of pu______s and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Answer 79

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Question 80

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and pay____s, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Answer 80

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Question 81

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase or___s and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Answer 81

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Question 82

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase jo____l, and (3) custody of inventory and checks for payment.

Answer 82

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Question 83

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of in______y and checks for payment.

Answer 83

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Question 84

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and ch__ks for payment.

Answer 84

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Question 85

Spending Cycle (PRAISE) • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for pa_____t.

Answer 85

Spending Cycle (PRAISE) • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Question 86

Spending Cycle (PRAISE): • Seg_______ of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Answer 86

Spending Cycle (PRAISE): • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Question 87

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment. • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Answer 87

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment. • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Question 88

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Answer 88

Spending Cycle Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Question 89

Spending Cycle (PRAISE) * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Evaluate performance – Determine if the client uses a sta_____ costing system that generates variances

Answer 89

Spending Cycle (PRAISE) * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance • Evaluate performance – Determine if the client uses a standard costing system that generates variances,

Question 90

Spending Cycle (PRAISE) • Evaluate performance – Determine if the client uses a standard c___ing system that generates variances

Answer 90

Spending Cycle (PRAISE) • Evaluate performance – Determine if the client uses a standard costing system that generates variances

Question 91

Spending Cycle (PRAISE) • Evaluate performance – Determine if the client uses a standard costing system that generates va_____es,

Answer 91

Spending Cycle (PRAISE) • Evaluate performance – Determine if the client uses a standard costing system that generates variances,

Question 92

Spending Cycle (PRAISE) • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to id____fy actual cost numbers that may be incorrect.

Answer 92

Spending Cycle (PRAISE) • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Question 93

Spending Cycle (PRAISE) • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost nu_____s that may be incorrect.

Answer 93

Spending Cycle (PRAISE) • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Question 94

Spending Cycle (PRAISE) • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify ac____ cost numbers that may be incorrect.

Answer 94

Spending Cycle (PRAISE) • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Question 95

Spending Cycle (PRAISE) • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual c__t numbers that may be incorrect.

Answer 95

Spending Cycle (PRAISE) • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Question 96

Spending Cycle (PRAISE) • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be inc_____t.

Answer 96

Spending Cycle (PRAISE) • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Question 97

Spending Cycle (PRAISE) • Eva_____ performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Answer 97

Spending Cycle (PRAISE) • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Question 98

Spending Cycle (PRAISE) • Evaluate perf_______ – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Answer 98

Spending Cycle (PRAISE) • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Question 99

Spending Cycle (Purchases / Accounts Payable / Cash Disbursements) The auditor should look for specific applications of the different control activities to the spending cycle. Commonly-tested examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE): • Physical controls – Verify that all goods are received by the receiving department and returns are shipped by the shipping department. • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned. • Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers. • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen. • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment. • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Answer 99

Spending Cycle (Purchases / Accounts Payable / Cash Disbursements) The auditor should look for specific applications of the different control activities to the spending cycle. Commonly-tested examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE): • Physical controls – Verify that all goods are received by the receiving department and returns are shipped by the shipping department. • Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned. • Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers. • Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen. • Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment. • Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Question 100

What Is a Canceled Check? A canceled check is a check that has been paid or cleared by the bank it was drawn on after it has been deposited or cashed. The check is "canceled" after it's been used or paid so that the check cannot be used again.

Answer 100

What Is a Canceled Check? A canceled check is a check that has been paid or cleared by the bank it was drawn on after it has been deposited or cashed. The check is "canceled" after it's been used or paid so that the check cannot be used again.

Question 101

What Is a cancelled check? A cancelled check is a check payment for which the stated amount of cash has been removed from the payer's checking account. Once the cash draw down is completed, the bank stamps the check as cancelled. Once a check is cancelled it can no longer be used as an authorization to remove additional funds from the account of the payer. A cancelled check has passed through the entire set of payment activities, which include the following: 1. Received by the payee 2. Endorsed by the payee 3. Deposited with the payee's bank 4. Paid by the drawee bank to the payee bank 5. Cash is paid into the payee's account by the payee bank

Answer 101

What Is a cancelled check? A cancelled check is a check payment for which the stated amount of cash has been removed from the payer's checking account. Once the cash draw down is completed, the bank stamps the check as cancelled. Once a check is cancelled it can no longer be used as an authorization to remove additional funds from the account of the payer. A cancelled check has passed through the entire set of payment activities, which include the following: 1. Received by the payee 2. Endorsed by the payee 3. Deposited with the payee's bank 4. Paid by the drawee bank to the payee bank 5. Cash is paid into the payee's account by the payee bank

Question 102

Returns and Allowances (debit memorandum) When a purchaser receives defective, damaged, or otherwise undesirable merchandise, the purchaser prepares a debit memorandum that identifies the items in question and the cost of those items. The purchaser uses the debit memorandum to inform the seller about the return and to prepare a journal entry that decreases (debits) accounts payable and increases (credits) an account named purchases returns and allowances, which is a contra‐expense account. Contra‐expense accounts normally have credit balances. On the income statement, the purchases returns and allowances account is subtracted from purchases.

Answer 102

Returns and Allowances (debit memorandum) When a purchaser receives defective, damaged, or otherwise undesirable merchandise, the purchaser prepares a debit memorandum that identifies the items in question and the cost of those items. The purchaser uses the debit memorandum to inform the seller about the return and to prepare a journal entry that decreases (debits) accounts payable and increases (credits) an account named purchases returns and allowances, which is a contra‐expense account. Contra‐expense accounts normally have credit balances. On the income statement, the purchases returns and allowances account is subtracted from purchases.

Question 103

Returns and Allowances (debit memorandum) Example: If Music World discovers $100 worth of defective merchandise in the shipment from Music Suppliers, Inc., Music World prepares a debit memorandum, returns the merchandise, and makes a journal entry that decreases (debits) accounts payable for $100 and that increases (credits) purchases returns and allowances for $100. General Journal Date Account Title and Description Debit Credit _________________________________________ 2013 06/15 Account Payable $100 Purchase Returns $100 and Allowances DM #1072, Invoice #15932 For reference purposes, the journal entry's description may include the debit memorandum number and the seller's invoice number.

Answer 103

Returns and Allowances (debit memorandum) Example: If Music World discovers $100 worth of defective merchandise in the shipment from Music Suppliers, Inc., Music World prepares a debit memorandum, returns the merchandise, and makes a journal entry that decreases (debits) accounts payable for $100 and that increases (credits) purchases returns and allowances for $100. General Journal Date Account Title and Description Debit Credit _________________________________________ 2013 06/15 Account Payable $100 Purchase Returns $100 and Allowances DM #1072, Invoice #15932 For reference purposes, the journal entry's description may include the debit memorandum number and the seller's invoice number.

Question 104

Returns and Allowances (debit memorandum) When a purchaser receives defective, damaged, or otherwise undesirable merchandise, the purchaser prepares a debit memorandum that identifies the items in question and the cost of those items. The purchaser uses the debit memorandum to inform the seller about the return and to prepare a journal entry that decreases (debits) accounts payable and increases (credits) an account named purchases returns and allowances, which is a contra‐expense account. Contra‐expense accounts normally have credit balances. On the income statement, the purchases returns and allowances account is subtracted from purchases. Returns and Allowances (debit memorandum) Example: If Music World discovers $100 worth of defective merchandise in the shipment from Music Suppliers, Inc., Music World prepares a debit memorandum, returns the merchandise, and makes a journal entry that decreases (debits) accounts payable for $100 and that increases (credits) purchases returns and allowances for $100. General Journal Date Account Title and Description Debit Credit _________________________________________ 2013 06/15 Account Payable $100 Purchase Returns $100 and Allowances DM #1072, Invoice #15932 For reference purposes, the journal entry's description may include the debit memorandum number and the seller's invoice number.

Answer 104

Returns and Allowances (debit memorandum) When a purchaser receives defective, damaged, or otherwise undesirable merchandise, the purchaser prepares a debit memorandum that identifies the items in question and the cost of those items. The purchaser uses the debit memorandum to inform the seller about the return and to prepare a journal entry that decreases (debits) accounts payable and increases (credits) an account named purchases returns and allowances, which is a contra‐expense account. Contra‐expense accounts normally have credit balances. On the income statement, the purchases returns and allowances account is subtracted from purchases. Returns and Allowances (debit memorandum) Example: If Music World discovers $100 worth of defective merchandise in the shipment from Music Suppliers, Inc., Music World prepares a debit memorandum, returns the merchandise, and makes a journal entry that decreases (debits) accounts payable for $100 and that increases (credits) purchases returns and allowances for $100. General Journal Date Account Title and Description Debit Credit _________________________________________ 2013 06/15 Account Payable $100 Purchase Returns $100 and Allowances DM #1072, Invoice #15932 For reference purposes, the journal entry's description may include the debit memorandum number and the seller's invoice number.

Question 105

Returns and Allowances (from the seller side) Why do we have a sales returns and allowances account? This question can be followed up with: Why don't we just debit Sales when there is a return? Why do we have to use a separate account? Sales Returns and Allowances is a contra account to Sales; thus, it has a normal debit balance. This account contains the dollar amount by which customers accounts have been reduced for goods returned to us or allowances made for damage, defects, etc. Since returns and allowances are not planned, and ideally we would never have any, we want to know why we have them. If we debit the sales account for them, the dollar amounts are not readily available when we prepare the income statement. The best way to know how much we have lost in sales due to returns and allowances is to record that information in a separate account. These data are important to know in managing a business. We want to keep the amount of returns and allowances to a minimum in order to achieve efficiency and customer satisfaction.

Answer 105

Returns and Allowances (from the seller side) Why do we have a sales returns and allowances account? This question can be followed up with: Why don't we just debit Sales when there is a return? Why do we have to use a separate account? Sales Returns and Allowances is a contra account to Sales; thus, it has a normal debit balance. This account contains the dollar amount by which customers accounts have been reduced for goods returned to us or allowances made for damage, defects, etc. Since returns and allowances are not planned, and ideally we would never have any, we want to know why we have them. If we debit the sales account for them, the dollar amounts are not readily available when we prepare the income statement. The best way to know how much we have lost in sales due to returns and allowances is to record that information in a separate account. These data are important to know in managing a business. We want to keep the amount of returns and allowances to a minimum in order to achieve efficiency and customer satisfaction.

Question 106

A Debit Memo What is a debit memo? A debit memo is usually a type of correspondence device. It is a piece of paper issued by the buyer to inform the seller how much the buyer plans to reduce its accounts payable balance when making a return or asking for an allowance. The buyer may use this form to record an entry, but many companies wait until they receive a credit memo from the seller economic sore recording the transaction, just in case the seller disagrees and the buyer later has to change the dollar amount of the previous entry.

Answer 106

A Debit Memo What is a debit memo? A debit memo is usually a type of correspondence device. It is a piece of paper issued by the buyer to inform the seller how much the buyer plans to reduce its accounts payable balance when making a return or asking for an allowance. The buyer may use this form to record an entry, but many companies wait until they receive a credit memo from the seller economic sore recording the transaction, just in case the seller disagrees and the buyer later has to change the dollar amount of the previous entry.

Question 107

Standard Cost vs Actual Cost 1. Meaning Standard Cost: Standard cost refers to the estimated costs of a product pertaining to material, labor, and other overhead costs. Actual Cost: The actual cost is the realized cost and is not based on the estimates of the same. ------------ 2. Accounting Treatment Standard Cost: Standard Cost cannot be included in the financial statements of a company Actual Cost: Actual Costs are shown as an expense in the financial statement ------------ 3. Recording the Costs Standard Cost: These costs are recorded at the beginning of the year when the budget is planned Actual Cost: These costs are incurred and realized during the entire year and recorded in the same manner. ------------ 4. Accuracy of Data Capture Standard Cost: In case of any errors in data capture, the inventory valuation does not change but shown as Variance Actual Cost: In case of errors in data capture, would lead to distorted costs and actual inventory valuation ------------ 5. Visibility of Issues Standard Cost: Method of cost using standard costs provides better visibility and chances to improve the performance, as the variances can be useful to identify the issues in the production and manufacturing process Actual Cost: In the method of costing using Actual costs, certain issues can be hidden by capitalizing them with the cost of the inventory

Answer 107

Standard Cost vs Actual Cost 1. Meaning Standard Cost: Standard cost refers to the estimated costs of a product pertaining to material, labor, and other overhead costs. Actual Cost: The actual cost is the realized cost and is not based on the estimates of the same. ------------ 2. Accounting Treatment Standard Cost: Standard Cost cannot be included in the financial statements of a company Actual Cost: Actual Costs are shown as an expense in the financial statement ------------ 3. Recording the Costs Standard Cost: These costs are recorded at the beginning of the year when the budget is planned Actual Cost: These costs are incurred and realized during the entire year and recorded in the same manner. ------------ 4. Accuracy of Data Capture Standard Cost: In case of any errors in data capture, the inventory valuation does not change but shown as Variance Actual Cost: In case of errors in data capture, would lead to distorted costs and actual inventory valuation ------------ 5. Visibility of Issues Standard Cost: Method of cost using standard costs provides better visibility and chances to improve the performance, as the variances can be useful to identify the issues in the production and manufacturing process Actual Cost: In the method of costing using Actual costs, certain issues can be hidden by capitalizing them with the cost of the inventory

Question 108

Standard Cost vs Actual Cost Conclusion – Standard Costing method requires to work on them every year or for every period the management decides as. Also, the variance that is observed after the actual costs needs to be monitored and check the accuracy of the standards decided. On the other hand, the actual costs need not be decided on an annual or periodic basis. The changes in the costs are decided on an ongoing basis. The method of costing to apply for the inventory entirely depends on the management and its style. While it might be recommended by many that actual costing is better when compared as it is more liberating, offers more options, readily available information and ultimately more flexibility, but there also be some thoughts around standard costing practices being more usable and better. On the basis of the standard costs, it becomes easier to attract bank loans and also make plans well in advance for the unit based on the estimated costs.

Answer 108

Standard Cost vs Actual Cost Conclusion – Standard Costing method requires to work on them every year or for every period the management decides as. Also, the variance that is observed after the actual costs needs to be monitored and check the accuracy of the standards decided. On the other hand, the actual costs need not be decided on an annual or periodic basis. The changes in the costs are decided on an ongoing basis. The method of costing to apply for the inventory entirely depends on the management and its style. While it might be recommended by many that actual costing is better when compared as it is more liberating, offers more options, readily available information and ultimately more flexibility, but there also be some thoughts around standard costing practices being more usable and better. On the basis of the standard costs, it becomes easier to attract bank loans and also make plans well in advance for the unit based on the estimated costs.

Question 109

Spending Cycle (Purchases / Accounts Payable / Cash Disbursements) Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various con____ activities to the various management assertions.

Answer 109

Spending Cycle (Purchases / Accounts Payable / Cash Disbursements) Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.

Question 110

Spending Cycle Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control ac____ties to the various management assertions.

Answer 110

Spending Cycle Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.

Question 111

Spending Cycle Just as in the case of the revenue cycle, the auditor is primarily concerned with the re______hip of the various control activities to the various management assertions.

Answer 111

Spending Cycle Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.

Question 112

Spending Cycle Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various ma________ assertions.

Answer 112

Spending Cycle Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.

Question 113

Spending Cycle Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management as____ions.

Answer 113

Spending Cycle Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.

Question 114

Spending Cycle Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions. Similarly to the revenue cycle, tracing through the sys___ in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,

Answer 114

Spending Cycle Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions. Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,

Question 115

Spending Cycle Similarly to the revenue cycle, t___ing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,

Answer 115

Spending Cycle Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,

Question 116

Spending Cycle Similarly to the revenue cycle, tracing through the system in the normal order (from so___e documents to postings in books and records) is an attempt to verify the completeness of the records,

Answer 116

Spending Cycle Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,

Question 117

Spending Cycle Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to p___ings in books and records) is an attempt to verify the completeness of the records,

Answer 117

Spending Cycle Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,

Question 118

Spending Cycle Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the com_____ess of the records,

Answer 118

Spending Cycle Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,

Question 119

Spending Cycle Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records, while vouching in re_____ order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Answer 119

Spending Cycle Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records, while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Question 120

Spending Cycle Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records, while v____ing in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Answer 120

Spending Cycle Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records, while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Question 121

Spending Cycle while vouching in reverse order (from b___s and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Answer 121

Spending Cycle while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Question 122

Spending Cycle while vouching in reverse order (from books and records b__k to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Answer 122

Spending Cycle while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Question 123

Spending Cycle while vouching in reverse order (from books and records back to so___e documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Answer 123

Spending Cycle while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Question 124

Spending Cycle while vouching in reverse order (from books and records back to source documents) is an attempt to v____y the existence or occurrence of all the transactions that are reflected in the records.

Answer 124

Spending Cycle while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Question 125

Spending Cycle while vouching in reverse order (from books and records back to source documents) is an attempt to verify the exis______ or occurrence of all the transactions that are reflected in the records.

Answer 125

Spending Cycle while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Question 126

Spending Cycle while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occ______ of all the transactions that are reflected in the records.

Answer 126

Spending Cycle while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Question 127

Spending Cycle while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of a__ the transactions that are reflected in the records.

Answer 127

Spending Cycle while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Question 128

Spending Cycle while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the tran______s that are reflected in the records.

Answer 128

Spending Cycle while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Question 129

Spending Cycle while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are re_____ed in the records.

Answer 129

Spending Cycle while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Question 130

Spending Cycle Just as in the case of the revenue cycle, the auditor is pri___ily concerned with the relationship of the various control activities to the various management assertions. Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records, while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Answer 130

Spending Cycle Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions. Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records, while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Question 131

Spending Cycle Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions. Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the co________ss of the records, while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Answer 131

Spending Cycle Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions. Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records, while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Question 132

Spending Cycle Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions. Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records, while vouching in reverse order (from books and records back to source documents) is an attempt to verify the e________e or occurrence of all the transactions that are reflected in the records.

Answer 132

Spending Cycle Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions. Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records, while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Question 133

Spending Cycle Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions. Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records, while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or oc________e of all the transactions that are reflected in the records.

Answer 133

Spending Cycle Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions. Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records, while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Question 134

Segregation of Duties in the Purchases and Spending Cycle For proper segr______ of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Answer 134

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Question 135

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of d___es, authorization of transactions, the recording function, and custody of assets should be kept separate.

Answer 135

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Question 136

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, auth_______ of transactions, the recording function, and custody of assets should be kept separate.

Answer 136

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Question 137

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, authorization of transactions, the re____ing function, and custody of assets should be kept separate.

Answer 137

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Question 138

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, authorization of transactions, the recording function, and cu___dy of assets should be kept separate.

Answer 138

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Question 139

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept se____te.

Answer 139

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Question 140

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate. • The fu______s of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Answer 140

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate. • The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 141

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate. • The functions of authorizing p_______es, receiving goods purchased, and recording the purchase should be segregated.

Answer 141

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate. • The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 142

Segregation of Duties in the Purchases and Spending Cycle • The functions of authorizing purchases, receiving g__ds purchased, and recording the purchase should be segregated.

Answer 142

Segregation of Duties in the Purchases and Spending Cycle • The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 143

Segregation of Duties in the Purchases and Spending Cycle • The functions of authorizing purchases, re____ing goods purchased, and recording the purchase should be segregated.

Answer 143

Segregation of Duties in the Purchases and Spending Cycle • The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 144

Segregation of Duties in the Purchases and Spending Cycle • The functions of authorizing purchases, receiving goods purchased, and re____ing the purchase should be segregated.

Answer 144

Segregation of Duties in the Purchases and Spending Cycle • The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 145

Segregation of Duties in the Purchases and Spending Cycle • The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be seg______d.

Answer 145

Segregation of Duties in the Purchases and Spending Cycle • The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 146

Segregation of Duties in the Purchases and Spending Cycle • The c__h functions should be segregated.

Answer 146

Segregation of Duties in the Purchases and Spending Cycle • The cash functions should be segregated.

Question 147

Segregation of Duties in the Purchases and Spending Cycle • The cash functions should be segregated. Authorizing pa_____t for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Answer 147

Segregation of Duties in the Purchases and Spending Cycle • The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 148

Segregation of Duties in the Purchases and Spending Cycle • The cash functions should be segregated. Authorizing payment for purchases, recording pay____s, access to checks, and reconciliation of the bank account should be segregated.

Answer 148

Segregation of Duties in the Purchases and Spending Cycle • The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 149

Segregation of Duties in the Purchases and Spending Cycle • The cash functions should be segregated. Authorizing payment for purchases, recording payments, ac____s to checks, and reconciliation of the bank account should be segregated.

Answer 149

Segregation of Duties in the Purchases and Spending Cycle • The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 150

Segregation of Duties in the Purchases and Spending Cycle • The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to ch___s, and reconciliation of the bank account should be segregated.

Answer 150

Segregation of Duties in the Purchases and Spending Cycle • The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 151

Segregation of Duties in the Purchases and Spending Cycle • The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reco______n of the bank account should be segregated.

Answer 151

Segregation of Duties in the Purchases and Spending Cycle • The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 152

Segregation of Duties in the Purchases and Spending Cycle • The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the b___ account should be segregated.

Answer 152

Segregation of Duties in the Purchases and Spending Cycle • The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 153

Segregation of Duties in the Purchases and Spending Cycle • The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank acc____t should be segregated.

Answer 153

Segregation of Duties in the Purchases and Spending Cycle • The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 154

Segregation of Duties in the Purchases and Spending Cycle • The cash functions should be segregated. Aut_____ing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Answer 154

Segregation of Duties in the Purchases and Spending Cycle • The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 155

Segregation of Duties in the Purchases and Spending Cycle • Individuals with authority to ap______ vouchers for payment should not have access to unused purchase orders.

Answer 155

Segregation of Duties in the Purchases and Spending Cycle • Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 156

Segregation of Duties in the Purchases and Spending Cycle • Individuals with authority to approve vo_____rs for payment should not have access to unused purchase orders.

Answer 156

Segregation of Duties in the Purchases and Spending Cycle • Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 157

Segregation of Duties in the Purchases and Spending Cycle • Individuals with authority to approve vouchers for pay____ should not have access to unused purchase orders.

Answer 157

Segregation of Duties in the Purchases and Spending Cycle • Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 158

Segregation of Duties in the Purchases and Spending Cycle • Individuals with authority to approve vouchers for payment should not have access to un__ed purchase orders.

Answer 158

Segregation of Duties in the Purchases and Spending Cycle • Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 159

Segregation of Duties in the Purchases and Spending Cycle • Individuals with authority to approve vouchers for payment should n__ have access to unused purchase orders.

Answer 159

Segregation of Duties in the Purchases and Spending Cycle • Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 160

Segregation of Duties in the Purchases and Spending Cycle • Individuals with authority to approve vouchers for payment should not have access to unused purchase or___s.

Answer 160

Segregation of Duties in the Purchases and Spending Cycle • Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 161

Segregation of Duties in the Purchases and Spending Cycle • Individuals with au_____ty to approve vouchers for payment should not have access to unused purchase orders.

Answer 161

Segregation of Duties in the Purchases and Spending Cycle • Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 162

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate. * The functions of au______ing purchases, receiving goods purchased, and recording the purchase should be segregated. * The c__h functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated. * Individuals with au_____ty to approve vouchers for payment should not have access to unused purchase orders.

Answer 162

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate. * The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated. * The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated. * Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 163

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate. * The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated. * The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated. * Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Answer 163

Segregation of Duties in the Purchases and Spending Cycle For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate. * The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated. * The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated. * Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 164

The auditor should look for specific ____________ of the different control activities to the spending cycle.

Answer 164

The auditor should look for specific applications of the different control activities to the spending cycle.

Question 165

The auditor should look for specific applications of the different ________ activities to the spending cycle.

Answer 165

The auditor should look for specific applications of the different control activities to the spending cycle.

Question 166

The auditor should look for specific applications of the different control _________ to the spending cycle.

Answer 166

The auditor should look for specific applications of the different control activities to the spending cycle.

Question 167

The auditor should look for specific applications of the different control activities to the _________ cycle.

Answer 167

The auditor should look for specific applications of the different control activities to the spending cycle.

Question 168

The _______ should look for specific applications of the different control activities to the spending cycle.

Answer 168

The auditor should look for specific applications of the different control activities to the spending cycle.

Question 169

What the auditor should look for in different control activities to the spending cycle?

Answer 169

The auditor should look for specific applications of the different control activities to the spending cycle.

Question 170

What are the examples of auditing procedures used to understand the internal control structure related to spending? (PRAISE)

Answer 170

Commonly-tested examples of auditing procedures used to understand the internal control structure related to spending (PRAISE): * Physical controls * Recording * Authorization * Independent checks * Segregation of duties * Evaluate performance

Question 171

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • P_______ c_______ • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Answer 171

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 172

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • R________ • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Answer 172

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 173

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • A___________ • Independent checks • Segregation of duties • Evaluate performance ```

Answer 173

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 174

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • I_________ c______ • Segregation of duties • Evaluate performance ```

Answer 174

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 175

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • S_________ of d_____ • Evaluate performance ```

Answer 175

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 176

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • E________ p___________ ```

Answer 176

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 177

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • P________________ • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Answer 177

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 178

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • I________________ • Segregation of duties • Evaluate performance ```

Answer 178

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 179

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • S_________________ • Evaluate performance ```

Answer 179

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 180

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • E________________ ```

Answer 180

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 181

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • ________ • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Answer 181

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 182

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • ___________ • Independent checks • Segregation of duties • Evaluate performance ```

Answer 182

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 183

What are the examples of auditing procedures used to understand the internal control structure related to spending? (PR____)

Answer 183

What are the examples of auditing procedures used to understand the internal control structure related to spending? (PRAISE)

Question 184

What are the examples of auditing procedures used to understand the internal control structure related to spending? (PR__SE)

Answer 184

What are the examples of auditing procedures used to understand the internal control structure related to spending? (PRAISE)

Question 185

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • ________________ • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Answer 185

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 186

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • _______________ • Segregation of duties • Evaluate performance ```

Answer 186

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 187

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • _________________ • Evaluate performance ```

Answer 187

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 188

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • _________________ ```

Answer 188

What are the examples of auditing procedures used to understand the internal control structure related to spending? ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 189

What are the examples of auditing procedures used to understand the internal control structure related to spending? (P______)

Answer 189

What are the examples of auditing procedures used to understand the internal control structure related to spending? (PRAISE)

Question 190

Examples of _______ procedures used to understand the internal control structure related to spending. ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Answer 190

Examples of auditing procedures used to understand the internal control structure related to spending. ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 191

Examples of auditing __________ used to understand the internal control structure related to spending. ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Answer 191

Examples of auditing procedures used to understand the internal control structure related to spending. ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 192

Examples of auditing procedures used to understand the internal control _________ related to spending. ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Answer 192

Examples of auditing procedures used to understand the internal control structure related to spending. ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 193

Examples of auditing procedures used to understand the ________ control structure related to spending. ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Answer 193

Examples of auditing procedures used to understand the internal control structure related to spending. ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 194

Examples of auditing procedures used to understand the internal control structure related to _________. ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Answer 194

Examples of auditing procedures used to understand the internal control structure related to spending. ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Question 195

"Verify that all goods are received by the receiving department and returns are shipped by the shipping department." The paragraph above described what type of auditing procedure used to understand the internal control structure related to spending. ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Answer 195

• Physical controls – Verify that all goods are received by the receiving department and returns are shipped by the shipping department.

Question 196

"Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned." The paragraph above described what type of auditing procedure used to understand the internal control structure related to spending. ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Answer 196

• Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Question 197

"Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers." The paragraph above described what type of auditing procedure used to understand the internal control structure related to spending. ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Answer 197

• Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.

Question 198

"Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen." The paragraph above described what type of auditing procedure used to understand the internal control structure related to spending. ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Answer 198

• Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.

Question 199

"Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment." The paragraph above described what type of auditing procedure used to understand the internal control structure related to spending. ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Answer 199

• Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Question 200

"Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect." The paragraph above described what type of auditing procedure used to understand the internal control structure related to spending. ``` (PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance ```

Answer 200

• Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Question 201

Physical controls – Verify that all ______ are received by the receiving department

Answer 201

Physical controls – Verify that all goods are received by the receiving department

Question 202

Physical controls – ______ that all goods are received by the receiving department

Answer 202

Physical controls – Verify that all goods are received by the receiving department

Question 203

Physical controls – Verify that ___ goods are received by the receiving department

Answer 203

Physical controls – Verify that all goods are received by the receiving department

Question 204

Physical controls – Verify that all goods are _______ by the receiving department

Answer 204

Physical controls – Verify that all goods are received by the receiving department

Question 205

Physical controls – Verify that all goods are received by the ________ department

Answer 205

Physical controls – Verify that all goods are received by the receiving department

Question 206

Physical controls – Verify that all goods are received by the receiving department and returns are _______ by the shipping department.

Answer 206

Physical controls – Verify that all goods are received by the receiving department and returns are shipped by the shipping department.

Question 207

Physical controls – Verify that all goods are received by the receiving department and returns are shipped by the _________ department.

Answer 207

Physical controls – Verify that all goods are received by the receiving department and returns are shipped by the shipping department.

Question 208

Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Answer 208

Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Question 209

Recording – Verify that receiving _______ are prepared for all goods received

Answer 209

Recording – Verify that receiving reports are prepared for all goods received

Question 210

Recording – Verify that receiving reports are prepared for ___ goods received

Answer 210

Recording – Verify that receiving reports are prepared for all goods received

Question 211

Recording – Verify that receiving reports are prepared for all goods ________

Answer 211

Recording – Verify that receiving reports are prepared for all goods received

Question 212

Recording – _______ that receiving reports are prepared for all goods received

Answer 212

Recording – Verify that receiving reports are prepared for all goods received

Question 213

Recording – Verify that receiving reports are prepared for all ______ received

Answer 213

Recording – Verify that receiving reports are prepared for all goods received

Question 214

Recording – Verify that receiving reports are prepared for all goods received and that debit _____ are prepared for all goods that are returned.

Answer 214

Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Question 215

Recording – Verify that receiving reports are prepared for all goods received and that _____ memos are prepared for all goods that are returned.

Answer 215

Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Question 216

Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for ___ goods that are returned.

Answer 216

Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Question 217

Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are ________.

Answer 217

Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Question 218

___________ – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Answer 218

Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.

Question 219

Authorization – Select individual cancelled checks ``` and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers. ```

Answer 219

Authorization – Select individual cancelled checks ``` and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers. ```

Question 220

Authorization – Select individual cancelled ________

Answer 220

Authorization – Select individual cancelled checks

Question 221

Authorization – _______ individual cancelled checks

Answer 221

Authorization – Select individual cancelled checks

Question 222

Authorization – Select individual _________ checks

Answer 222

Authorization – Select individual cancelled checks

Question 223

Authorization – Select individual cancelled checks and _______ them to the purchase orders,

Answer 223

Authorization – Select individual cancelled checks and vouch them to the purchase orders,

Question 224

Authorization – Select individual cancelled checks and vouch them to the __________ orders, receiving reports,

Answer 224

Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports,

Question 225

Authorization – Select individual cancelled checks and vouch them to the purchase orders, __________ reports,

Answer 225

Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports,

Question 226

Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor ________,

Answer 226

Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices,

Question 227

Authorization – Select individual cancelled checks ``` and vouch them to the purchase orders, receiving reports, vendor invoices, and __________ vouchers. ```

Answer 227

Authorization – Select individual cancelled checks ``` and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers. ```

Question 228

Authorization – Select individual cancelled checks ``` and vouch them to the purchase _______, _________ reports, vendor invoices, and payment vouchers. ```

Answer 228

Authorization – Select individual cancelled checks ``` and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers. ```

Question 229

Authorization – Select individual cancelled checks ``` and vouch them to the purchase orders, receiving reports, _______ invoices, and payment ________. ```

Answer 229

Authorization – Select individual cancelled checks ``` and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers. ```

Question 230

___________ – Select individual cancelled checks ``` and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers. ```

Answer 230

Authorization – Select individual cancelled checks ``` and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers. ```

Question 231

Independent checks – Verify that the client periodically performs __________ counts

Answer 231

Independent checks – Verify that the client periodically performs inventory counts

Question 232

Independent checks – Verify that the client periodically performs inventory ______

Answer 232

Independent checks – Verify that the client periodically performs inventory counts

Question 233

Independent checks – ______ that the client periodically performs inventory counts

Answer 233

Independent checks – Verify that the client periodically performs inventory counts

Question 234

Independent checks – Verify that the client __________ performs inventory counts

Answer 234

Independent checks – Verify that the client periodically performs inventory counts

Question 235

Independent checks – Verify that the client periodically performs inventory counts and reconciles _______ on hand to inventory records

Answer 235

Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records

Question 236

Independent checks – Verify that the client periodically performs inventory counts and _________ amounts on hand to inventory records

Answer 236

Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records

Question 237

Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory _______

Answer 237

Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records

Question 238

Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on _____ to inventory records so as to know when inventory has been lost or stolen.

Answer 238

Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.

Question 239

Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when __________ has been lost or stolen.

Answer 239

Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.

Question 240

Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or ________.

Answer 240

Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.

Question 241

________________ – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.

Answer 241

Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.

Question 242

Segregation of duties – Use ________ and observation to determine that there is a separation

Answer 242

Segregation of duties – Use inquiry and observation to determine that there is a separation

Question 243

Segregation of duties – Use inquiry and ____________ to determine that there is a separation

Answer 243

Segregation of duties – Use inquiry and observation to determine that there is a separation

Question 244

Segregation of duties – Use inquiry and observation to ___________ that there is a separation

Answer 244

Segregation of duties – Use inquiry and observation to determine that there is a separation

Question 245

Segregation of duties – Use inquiry and observation to determine that there is a separation of the _________ of (1) authorization of purchases and payments,

Answer 245

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments,

Question 246

Segregation of duties – Use inquiry and observation to determine that there is a ___________ of the functions of (1) authorization of purchases and payments,

Answer 246

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments,

Question 247

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) ___________ of purchases and payments,

Answer 247

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments,

Question 248

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of _________ and payments,

Answer 248

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments,

Question 249

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and __________,

Answer 249

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments,

Question 250

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) _________ of purchase orders and posting to the purchase journal,

Answer 250

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal,

Question 251

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of ________ orders and posting to the purchase journal,

Answer 251

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal,

Question 252

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and _______ to the purchase journal,

Answer 252

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal,

Question 253

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase _______,

Answer 253

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal,

Question 254

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of _________ and checks for payment.

Answer 254

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Question 255

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) ______ of inventory and checks for payment.

Answer 255

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Question 256

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and _______ for payment.

Answer 256

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Question 257

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for ________.

Answer 257

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Question 258

__________________ – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Answer 258

Segregation of duties – Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.

Question 259

Evaluate performance – Determine if the client uses a _________ costing system that generates variances,

Answer 259

Evaluate performance – Determine if the client uses a standard costing system that generates variances,

Question 260

Evaluate performance – Determine if the client uses a standard costing system that generates _________,

Answer 260

Evaluate performance – Determine if the client uses a standard costing system that generates variances,

Question 261

Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify ______ cost numbers that may be incorrect.

Answer 261

Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Question 262

Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual ____ numbers that may be incorrect.

Answer 262

Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Question 263

Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost _________ that may be incorrect.

Answer 263

Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Question 264

Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be _________.

Answer 264

Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Question 265

___________________ – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Answer 265

Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.

Question 266

_________ through the system in the normal order (from source documents to postings in books and records) source documents --> books posting is an attempt to verify the COMPLETENESS of the records,

Answer 266

Tracing through the system in the normal order (from source documents to postings in books and records) source documents --> books posting is an attempt to verify the COMPLETENESS of the records,

Question 267

Tracing through the system in the normal order (from source documents to postings in books and _______) source documents --> books posting is an attempt to verify the COMPLETENESS of the records,

Answer 267

Tracing through the system in the normal order (from source documents to postings in books and records) source documents --> books posting is an attempt to verify the COMPLETENESS of the records,

Question 268

Tracing through the system in the normal order (from source ________ to postings in books and records) source documents --> books posting is an attempt to verify the COMPLETENESS of the records,

Answer 268

Tracing through the system in the normal order (from source documents to postings in books and records) source documents --> books posting is an attempt to verify the COMPLETENESS of the records,

Question 269

Tracing through the system in the normal order (from source documents to postings in books and records) source documents --> books posting is an attempt to verify the ___________ of the records,

Answer 269

Tracing through the system in the normal order (from source documents to postings in books and records) source documents --> books posting is an attempt to verify the COMPLETENESS of the records,

Question 270

Tracing from ________ documents to postings in books and records source documents --> books posting is an attempt to verify the COMPLETENESS of the records,

Answer 270

Tracing from source documents to postings in books and records source documents --> books posting is an attempt to verify the COMPLETENESS of the records,

Question 271

Tracing from source documents to ________ in books and records source documents --> books posting is an attempt to verify the COMPLETENESS of the records,

Answer 271

Tracing from source documents to postings in books and records source documents --> books posting is an attempt to verify the COMPLETENESS of the records,

Question 272

Tracing from source documents to postings in books and records source documents --> books posting is an attempt to ______ the COMPLETENESS of the records,

Answer 272

Tracing from source documents to postings in books and records source documents --> books posting is an attempt to verify the COMPLETENESS of the records,

Question 273

_________ in reverse order (from books and records back to source documents) Books record --> source documents is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Answer 273

Vouching in reverse order (from books and records back to source documents) Books record --> source documents is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Question 274

Vouching in reverse order (from books and records back to source _________) Books record --> source documents is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Answer 274

Vouching in reverse order (from books and records back to source documents) Books record --> source documents is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.

Question 275

_________ in reverse order (from books and records back to source documents) Books record --> source documents is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.

Answer 275

Vouching in reverse order (from books and records back to source documents) Books record --> source documents is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.

Question 276

Vouching in ______ order (from books and records back to source documents) Books record --> source documents is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.

Answer 276

Vouching in reverse order (from books and records back to source documents) Books record --> source documents is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.

Question 277

Vouching in reverse order (from _____ and records back to source documents) Books record --> source documents is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.

Answer 277

Vouching in reverse order (from books and records back to source documents) Books record --> source documents is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.

Question 278

Vouching in reverse order (from books and records back to source documents) Books record --> source documents is an attempt to verify the __________ or OCCURRENCE of all the transactions that are reflected in the records.

Answer 278

Vouching in reverse order (from books and records back to source documents) Books record --> source documents is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.

Question 279

Vouching in reverse order (from books and records back to source documents) Books record --> source documents is an attempt to verify the EXISTENCE or __________ of all the transactions that are reflected in the records.

Answer 279

Vouching in reverse order (from books and records back to source documents) Books record --> source documents is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.

Question 280

Vouching in reverse order (from books and records back to source documents) Books record --> source documents is an attempt to _____ the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.

Answer 280

Vouching in reverse order (from books and records back to source documents) Books record --> source documents is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.

Question 281

_________ in reverse order from books and records back to source documents Books record --> source documents is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions

Answer 281

Vouching in reverse order from books and records back to source documents Books record --> source documents is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions

Question 282

Vouching in reverse order from books and records back to source _________ Books record --> source documents is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions

Answer 282

Vouching in reverse order from books and records back to source documents Books record --> source documents is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions

Question 283

Vouching in reverse order from books and records back to source documents Books record --> source documents is an attempt to verify the ________ or OCCURRENCE of all the transactions

Answer 283

Vouching in reverse order from books and records back to source documents Books record --> source documents is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions

Question 284

Vouching in reverse order from books and records back to source documents Books record --> source documents is an attempt to verify the EXISTENCE or OCCURRENCE of ___ the transactions

Answer 284

Vouching in reverse order from books and records back to source documents Books record --> source documents is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions

Question 285

What is the auditor primarily concerned with related to the various management assertions?

Answer 285

What is the auditor primarily concerned with related to the various management assertions? Answer: The auditor is primarily concerned with the relationship of the various control activities to the various management assertions.

Question 286

What is the auditor attempt to verify when tracing through the system in the normal order? (Tracing from source documents --> postings in books and records)

Answer 286

What is the auditor attempt to verify when tracing through the system in the normal order? (Tracing from source documents --> postings in books and records) Answer: The auditor attempt to verify the COMPLETENESS of the records. --------------- Tracing through the system in the normal order, from source documents --> postings in books and records, is an attempt to verify the completeness of the records.

Question 287

What is the auditor attempt to verify when vouching in reverse order? (Vouching from books and records back to ---> source documents)

Answer 287

What is the auditor attempt to verify when vouching in reverse order? (Vouching from books and records back to ---> source documents) Answer: The auditor attempt to verify the existence or occurrence of the records. --------------- Vouching in reverse order, from books and records back to --> source documents, is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.

Question 288

For proper ____________ of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Answer 288

For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Question 289

For proper segregation of _____, authorization of transactions, the recording function, and custody of assets should be kept separate.

Answer 289

For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Question 290

For proper segregation of duties, ___________ of transactions, the recording function, and custody of assets should be kept separate.

Answer 290

For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Question 291

For proper segregation of duties, authorization of transactions, the _________ function, and custody of assets should be kept separate.

Answer 291

For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Question 292

For proper segregation of duties, authorization of transactions, the recording function, and _______ of assets should be kept separate.

Answer 292

For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Question 293

For proper segregation of duties, authorization of __________, the recording function, and custody of assets should be kept separate.

Answer 293

For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Question 294

For proper segregation of duties, authorization of transactions, the recording ________, and custody of assets should be kept separate.

Answer 294

For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Question 295

For proper segregation of duties, authorization of transactions, the recording function, and custody of _______ should be kept separate.

Answer 295

For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Question 296

For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept __________.

Answer 296

For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Question 297

For proper segregation of duties, ___________ of transactions, the _________ function, and ________ of assets should be kept separate.

Answer 297

For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.

Question 298

• The functions of _________ purchases, receiving goods purchased, and recording the purchase should be segregated.

Answer 298

• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 299

• The functions of authorizing purchases, __________ goods purchased, and recording the purchase should be segregated.

Answer 299

• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 300

• The functions of authorizing purchases, receiving goods purchased, and __________ the purchase should be segregated.

Answer 300

• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 301

• The functions of authorizing _________, receiving goods purchased, and recording the purchase should be segregated.

Answer 301

• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 302

• The functions of authorizing purchases, receiving goods __________, and recording the purchase should be segregated.

Answer 302

• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 303

• The functions of authorizing purchases, receiving goods purchased, and recording the _________ should be segregated.

Answer 303

• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 304

• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be ___________.

Answer 304

• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 305

• The _________ of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Answer 305

• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 306

• The functions of authorizing purchases, receiving _______ purchased, and recording the purchase should be segregated.

Answer 306

• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 307

• The functions of authorizing purchases, ______________ purchased, and recording the purchase should be segregated.

Answer 307

• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 308

• The functions of authorizing purchases, _________________________, and recording the purchase should be segregated.

Answer 308

• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 309

• The functions of authorizing purchases, receiving goods purchased, and __________ the _________ should be segregated.

Answer 309

• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 310

• The functions of _________ purchases, _________ goods purchased, and _________ the purchase should be segregated.

Answer 310

• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 311

• The cash __________ should be segregated.

Answer 311

• The cash functions should be segregated.

Question 312

• The ____ functions should be segregated.

Answer 312

• The cash functions should be segregated.

Question 313

• The cash functions should be ___________.

Answer 313

• The cash functions should be segregated.

Question 314

• The cash functions should be segregated. Authorizing payment for purchases, recording _________,

Answer 314

• The cash functions should be segregated. Authorizing payment for purchases, recording payments,

Question 315

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to ______,

Answer 315

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks,

Question 316

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, _______ to checks,

Answer 316

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks,

Question 317

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and ___________ of the bank account

Answer 317

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account

Question 318

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the _____ account should be segregated.

Answer 318

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 319

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank _______ should be segregated.

Answer 319

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 320

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be ___________.

Answer 320

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 321

• The cash functions should be segregated. _________________ for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Answer 321

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 322

• The cash functions should be segregated. Authorizing payment for purchases, ________________, access to checks, and reconciliation of the bank account should be segregated.

Answer 322

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 323

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and ____________ of the bank _________ should be segregated.

Answer 323

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 324

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, ______ to _______, and reconciliation of the bank account should be segregated.

Answer 324

• The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 325

• Individuals with _________ to approve vouchers for payment should not have access to unused purchase orders.

Answer 325

• Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 326

• Individuals with authority to _______ vouchers for payment should not have access to unused purchase orders.

Answer 326

• Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 327

• _________ with authority to approve vouchers for payment should not have access to unused purchase orders.

Answer 327

• Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 328

• Individuals with authority to approve ________ for payment should not have access to unused purchase orders.

Answer 328

• Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 329

• Individuals with authority to approve vouchers for _________ should not have access to unused purchase orders.

Answer 329

• Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 330

• Individuals with authority to approve vouchers for payment should not have ______ to unused purchase orders.

Answer 330

• Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 331

• Individuals with authority to approve vouchers for payment should not have access to unused purchase ______.

Answer 331

• Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 332

• Individuals with authority to approve vouchers for payment should not have access to _______ purchase orders.

Answer 332

• Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 333

• Individuals with authority to approve vouchers for payment should ___ have access to unused purchase orders.

Answer 333

• Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.

Question 334

Should a manager who authorizes purchases perform recording function of the purchases?

Answer 334

Should a manager who authorizes purchases perform recording function of the purchases? Answer: No The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 335

Should a manager who authorizes purchases perform recording function of the purchases?

Answer 335

Should a manager who authorizes purchases perform recording function of the purchases? Answer: No The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 336

Should an employee who receives goods purchases perform recording function of the purchases?

Answer 336

Should an employee who receives goods purchases perform recording function of the purchases? Answer: No The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 337

Should an employee who receives goods purchases perform recording function of the purchases?

Answer 337

Should an employee who receives goods purchases perform recording function of the purchases? Answer: No The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.

Question 338

Should a person who perform bank reconciliation also recording payments?

Answer 338

Should a person who perform bank reconciliation also recording payments? Answer: No The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 339

Should a person who has access to checks also perform reconciliation of the bank account?

Answer 339

Should a person who has access to checks also perform reconciliation of the bank account? Answer: No The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 340

Should a person who has access to checks also perform reconciliation of the bank account?

Answer 340

Should a person who has access to checks also perform reconciliation of the bank account? Answer: No The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.

Question 341

Should an individual with authority to approve vouchers for payment also have access to unused purchase orders?

Answer 341

Should an individuals with authority to approve vouchers for payment also have access to unused purchase orders? Answer: No Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.