Audit Chapter 8 Exam Bank Solution Manual 100% Pass
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Audit Chapter 8
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Audit Chapter 8
Audit Chapter 8 Exam Bank Solution Manual 100% Pass
When confirming accounts payable, emphasis should be put on what kind of accounts?
A. Accounts with small or zero balances.
B. All accounts should be equally emphasized.
C. Accounts with large balances.
D. Accounts listed in the accou...
Audit Chapter 8 Exam Bank Solution Manual 100% Pass
When confirming accounts payable, emphasis should be put on what kind of accounts?
A. Accounts with small or zero balances.
B. All accounts should be equally emphasized.
C. Accounts with large balances.
D. Accounts listed in the accounts payable subsidiary. - Answers Accounts with small or zero balances.
"Recorded vouchers (accounts payable entries) in the voucher register (e.g., purchases journal)
supported by completed voucher documentation" is a specific example of which management
assertion?
A. Classification.
B. Occurrence.
C. Completeness.
D. Cutoff. - Answers Occurrence
"All purchase orders are supported by requisitions from proper persons" is a specific example of which
management assertion?
A. Occurrence.
B. Completeness.
,C. Cutoff.
D. Classification. - Answers Occurrence
Cash disbursements are authorized by
A. Purchase orders.
B. Invoices.
C. Receiving reports.
D. A complete voucher package. - Answers A complete voucher package
For the copy of the purchase order that goes to the receiving department, it is best to
A. Leave off the description of the goods ordered.
B. Leave off the quantity of the goods ordered.
C. Leave off the name of the vendor.
D. Have the receiving department forward all copies of the purchase order to accounts payable. -
Answers Leave off the quantity of the goods ordered
Vouchers should be stamped PAID to
A. Prevent duplicate payment.
,B. Generate a new purchase order.
C. Indicate posting in the voucher register.
D. Facilitate preparation of the bank reconciliation. - Answers Prevent duplicate payment
A voucher package is used to
A. Document receipt of inventory.
B. Document completion of services.
C. Document a purchase contract.
D. Provide a source document for recording the purchase of a good or service. - Answers Provide a
source document for recording the purchase of a good or service
An auditor traced a sample of purchase orders and the related receiving reports to the purchases
journal. The purpose of this substantive audit procedure most likely was to
A. Identify usually large purchases that should be investigated further.
B. Verify that cash disbursements were for goods actually received.
C. Determine that purchases were properly recorded.
D. Test whether payments were for goods actually ordered. - Answers Determine that purchases were
properly recorded
, The usual source for journal entries posted to the general ledger to record the purchase of inventory is
A. Sales invoices updated with cost data from the inventory records department.
B. Purchase invoices updated with cost data from the inventory records department.
C. Receiving reports updated with cost data from the accounts payable department.
D. Vouchers payable journal from the accounts payable department. - Answers Vouchers payable
journal from the accounts payable department
Which of the following would detect the understatement of a purchase discount?
A. Verify the arithmetic accuracy of the purchases journal.
B. Compare purchase disbursement records and checks with invoice terms.
C. Compare approved purchase orders to receiving reports.
D. Verify the receipt of items ordered and invoiced. - Answers Compare purchase disbursement records
and checks with invoice terms.
Which of the following situations indicates a potential material weakness in internal control over
acquisition and expenditure?
A. Purchase orders are not prepared for services acquired directly under authorization of department
heads.
B. The same person authorizes voucher packages and signs checks.
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