M4 Business Processes

Question 1

MCQ-15048
When an organization employs business process automation, it is looking to identify and
automate business processes. Which of the following would not be an attribute that would
make a process a good candidate for business process automation?

Answer 1

The process CHANGES REGULARLY

Question 2

MCQ-14566
A pick ticket is a common document found in which business process?

Answer 2

REVENUE process

Question 3

MCQ-14570
The three-way match is a vital control within the expenditure process. Which of the
following documents is not part of the three-way match?

Answer 3

SALES order

Question 4

MCQ-15766
In the processing of sales orders, which of the following documents authorizes the
warehouse to send goods to the shipping department?

Answer 4

PICKING ticket

Question 5

MCQ-14509
Tina works in the accounts payable department at Big Time Sales Co. Tina is responsible
for compiling vouchers and performing the three-way match. When performing this function,
Tina would need to review all of the following documents except the:

Answer 5

Bill of lading.

Question 6

MCQ-15051
Which of the following is a common document found in the revenue process?

Answer 6

PACKING slip

Question 7

MCQ-15050
Which of the following is a common document found in the expenditure process?

Answer 7

Voucher

Question 8

MCQ-14567
Which of the following is not one of the five steps found in the manufacturing process?

Answer 8

Purchase RAW MATERIALS

Question 9

MCQ-15052
Which of the following is a common document found in the HUMAN RESOURCES and payroll
process?

Answer 9

Earnings statement

Question 10

MCQ-15049
Which of the following is a common document found in the MANUFACTURING process?

Answer 10

Bill of MATERIALS

Question 11

MCQ-14572
Segregation of duties is a control that should be applied to all categories of business
processes. Segregation of duties policies and procedures should ensure functions are
segregated from one another. From a control perspective, which of the following processes
does not need to be segregated from the others?

Answer 11

Marketing

Question 12

MCQ-14573
Which of the following would be considered a detective control over standing data?

Answer 12

Reconciliation of changes to the data

Question 13

MCQ-14568
Mick works at a large retail firm. When reviewing the sales made during the past week, he
noticed there was an online sale for item No. 1903. Mick was confused because he had
never seen this item before, and upon further investigation, he discovered that this item was
not found in the item master file. What control could have prevented this issue?

Answer 13

Validity check

Question 14

MCQ-14569
Steve manages a wholesale restaurant supply store. When customers call to place an
order, Steve takes down their last name and later finds the customer in his records and
sends the customer a bill. This process recently caused a problem for Steve because he
had two customers with the same last name, and Steve sent a bill to the incorrect customer.
What control could have prevented this issue?

Answer 14

Closed-LOOP verification

Question 15

MCQ-14571
Shawn is compiling a report of his sales for the year. He created a grand total column on his
spreadsheet. The grand total was copied to his income statement as reported sales for the
year. During Shawn’s year end audit, it was determined that the sales number was wrong.
The auditor recalculated the total by summing each column and summing the row of
column totals. Shawn’s grand total column had missed the first column of sales. What
control could have prevented this issue?

Answer 15

CROSS-footing

Question 16

MCQ-14574
Which of the following is a preventive supervisory and monitoring control?

Answer 16

Hiring guidelines

Question 17

MCQ-15053
Rena is part of the management team at Brock Supplies, and she has been tasked with
implementing controls over all expense accounts. Which of the following would be a
detective supervisory and monitoring control that would allow her to ensure ongoing
monitoring of performance of expenses?

Answer 17

Expense budgets

Question 18

MCQ-14575
Bret needs to document the expenditure cycle of Cloverleaf Designs as part of his current
audit engagement. He wants to create an easy-to-follow visual depiction of the process with
a focus on the logical flow of data as opposed to the physical flow. What type of process
documentation technique should Bret utilize?

Answer 18

Data flow diagram

Question 19

MCQ-14508
Edward was recently hired to be an internal auditor at Retail Co. His first assignment is to
create a visual depiction of the entire revenue process. His manager noted that Edward
should indicate whether processes are manual or automated and to label current controls
and identify potential control deficiencies. Which documentation technique should Edward
utilize?

Answer 19

Flowchart