SAP

Question 1

general technology controls

Answer 1

technological infrastructure, security management, technological acquisition and maintenance.

Overarching and organization wide like password requirements

Question 2

application controls

Answer 2

built within software. Error messages to control what we mess up

Question 3

completeness check

Answer 3

all required data for a record/transaction has been entered before a user can continue

Question 4

limit check

Answer 4

tests the amount against the “floor” or “ceiling.;
Ex- customer order vs available credit, and regular hours worked can’t go over 40 hours

Question 5

range check

Answer 5

like a limit check but has both a “floor” AND a “Ceiling” running concurrently. Ensures efficiency
ex- Each order of rocking chairs has to be at least 5 and less than 1000.

Question 6

sign check

Answer 6

Is the number entered the appropriate sign? (positive or negative.) If there are options for debits and credits then all numbers should be positive.

Question 7

size check

Answer 7

that data fits into appropriate field. Zip codes are 5 or 9 digits, phone numbers are 10 digits

Question 8

closed loop verification

Answer 8

works with validity check and displays supplementary info so the user can ensure that the correct that the correct data is being utilized.
ex- when a vendor number is entered on a PO, the vendor name also populates

Question 9

zero balance test

Answer 9

compares numerical data to a pre-determined result.
ex- journal entries, debits - credits = 0

Question 10

validity check

Answer 10

compares entered data to standing data
ex- customer number enter on a PO to customer list and PO number entered on a receiving report to open POS.

Question 11

field check

Answer 11

ensures that data entered is the proper type
ex- numbers in amount fields, and text in data fields. Message “data type mismatch”

Question 12

reasonableness check

Answer 12

applies logic between categories to determine potential anomalies.
ex- 5,000 a day for office supplies compared to 5000 for raw materials.

Question 13

3 activities that should be segregated

Answer 13

authorization, recording, and custody

role, profile, and User ID determines what the user is allowed to do within SAP. If they work in sales then they can only see sales interface

Question 14

master data

Answer 14

Can edit but updates are not cascading meaning you can’t fix past errors

Question 15

transaction data

Answer 15

assumes all documents have been sent/used when created

Question 16

what should the journal entry recorded be when you create a purchase requisition

Answer 16

none

Question 17

what should the journal entry be when you create the purchase order

Answer 17

none

Question 18

what should be the journal entry when you create a receiving report (goods receipt)

Answer 18

D: Inventory
C: GR/IR

Question 19

what should be the journal entry when you create an invoice

Answer 19

D: GR/IR
C: AP

Question 20

what does it mean when there is a credit amount for GR/IR

Answer 20

we recorded too much goods. Because Invoice entry should make the GR/IR account = 0. Detective control

Question 21

goods receipt defaults to

Answer 21

all goods ordered were received, doesn’t seem like a good idea

Question 22

vendor kick back

Answer 22

purchasing fraud. Real invoice, real goods, existing vendor, but prices are too high. Surplus goes to salesman

Question 23

fictitious vendor

Answer 23

purchasing fraud. Fake vendor, fake invoice, and fake goods but there is a payment.
An indication of a lack of segregation of duties- person has the ability to create fake master data, record transactions, and authorize them.

Question 24

key control in purchasing

Answer 24

3 way match

Question 25

segregate duties

Answer 25

inventory clerk- checks stock, forecast demands, and can issue purchase requisitions purchasing clerk- executes purchase order warehouse clerk- receives goods accounting clerk- does 3 way match controller- approves the check All of these people shouldn't be able to record the transaction because they can lend themselves money

Question 26

job order costing

Answer 26

distinct products and cost are traced back by job or batch

Question 27

process costing

Answer 27

large batches of homogenous products and average cost per product is determined

Question 28

costs assigned to product

Answer 28

raw materials/direct materials, direct labor, and overhead

Question 29

activity based costing

Answer 29

way to assign overhead. Like rent allocated by square feet, purchasing costs allocated by number of purchase orders, and supervisory costs allocated by number of employees.

Question 30

MRP

Answer 30

Materials requirement planning. What SAP is all about. If we want to make 100 rockers, got to make sure we have enough materials, labor, and capacity to do so. Determined via BOM and routing. Includes converting planned order to production order which is a VERY important authorization step in production

Question 31

Bill of materials

Answer 31

"recipe" of a finished good. Contains part numbers, quantities etc. Creates direct cost per unit Production

Question 32

routings

Answer 32

thorough description of what should be done, how long it should take and where the work will be done. Sets standard cost per unit Production

Question 33

What is the complete structured list of components that make up a product?

Answer 33

BOM

Question 34

What is the description of operations that have to be accomplished to produce a good?

Answer 34

Routing

Question 35

What kind of control is safety stock?

Answer 35

Preventive

Question 36

Creating an accurate routing is most closely related to which assertion surrounding the production of inventory?

Answer 36

Completeness- routing deals with costs and other things we would understate.

Question 37

occurrence in production

Answer 37

all debits to inventory are warranted and based upon real movement of goods. Deals things we wanna Overstate

Question 38

Converting a planned order to a production order is most closely related to what assertion

Answer 38

Authorization

Question 39

valuation

Answer 39

any costs that could be reasonably allocated to the cost of production have been and any abnormal waste has been removed from the cost. (appropriate valuation method has been chosen: Lifo, fifo, etc.) Assertion concerning balances

Question 40

rights and obligations

Answer 40

inventory BELONGS to the company (watch shipping dates/assignments) Assertion concerning balances

Question 41

checking for settlement costs is most closely related to what assertion concerning the production of inventory?

Answer 41

valuation

Question 42

views

Answer 42

if you're in the purchasing department you can only view the purchasing interface.SOD

Question 43

raw materials into production journal entry

Answer 43

WIP Raw Materials

Question 44

Finished goods out of production

Answer 44

Finished goods WIP

Question 45

COGS entry

Answer 45

COGS Deduction in inventory Net purchases

Question 46

order of documents

Answer 46

purchase requisition purchase order goods receipt invoice receipt

Question 47

When linking together vendors and materials, which management assertion is most directly related?

Answer 47

classification

Question 48

Within SAP, when you record an invoice (that you received), the general ledger is automatically updated. When considering a purchase transaction, which management assertion is most directly related to this part of the process?

Answer 48

Completeness

Question 49

distribution channel

Answer 49

how the goods get to the customer

Question 50

direct distribution channel

Answer 50

Straight to customer

Question 51

wholesale

Answer 51

sell to retailer who sells to customer

Question 52

if you are creating customer master records, what other duties should you NOT be able to do

Answer 52

Record and authorize transactions

Question 53

What is the organizational unit responsible for scheduling and processing deliveries to customers?

Answer 53

shipping point

Question 54

What impacts the final selling price to customers?

Answer 54

Quantity ordered, shipping method, when paid

Question 55

In the exercise where you created selling prices for your goods, if you had tried to enter “Twenty Five” instead of 25 you would have gotten an error message. What is the most likely control used to prevent text instead of numbers?

Answer 55

Field Check

Question 56

Assume that a customer wanted 1,000 rockers. What management assertion is most enhanced by comparing the sales order quantities to the inventory available?

Answer 56

accuracy

Question 57

What management assertions are enhanced by viewing the document flow (as in SD 20?)

Answer 57

occurence

Question 58

What management assertions are enhanced by SAP automatically checking credit?

Answer 58

authorization

Question 59

2 journal entries in SAP for sales (perpetual system)

Answer 59

Goods issue (Dr to COGS, and Cr to Inventory) invoice entry (DR to AR and Cr to Sales)

Question 60

what is the module used for external reporting

Answer 60

financial accounting

Question 61

what piece of data links a sell to a particular customer

Answer 61

customer master data

Question 62

When a cost is transferred from financial accounting to controlling what is it called?

Answer 62

Primary cost

Question 63

Why should a GR/IR account have a zero balance at the end of the period

Answer 63

Because the goods received is a temporary liability until it is trasferred into AP when the invoice is received. Ihe goods are received before the invoice then the account has a credit balance and if the invoice is received before the goods then it has a debit balance.

Question 64

what links financial accounting with purchases?

Answer 64

Vendor master data

Question 65

primary cost

Answer 65

comes straight from the G/L account and typically arises from outside of the company. Whenever it is used in a journal entry the cost center must be assigned ex- rent expense

Question 66

secondary cost

Answer 66

doesn't come from outside of the company or match in the G/L account. ex- cost of graduation at auburn is distributed across many departments

Question 67

distribution

Answer 67

primary costs get allocated across appropriate cost centers.

Question 68

assessment

Answer 68

primary and secondary costs are allocated but in a lump sum amount so detail isn't available ex- cafeteria costs (don't care how much is food, electricity, janitor)

Question 69

what document creates the debit to COGS and credit to inventory?

Answer 69

outbound delivery