Chapter 14 - Chapter 14 Take Home Quiz Key 1. a. b. c. d....

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 14 Take Home Quiz Key 1. Proper separation of duties is useful to prevent various types of misstatements. Which of the following is not an essential separation of duties? a. Persons having access to cash should not have access to marketable securities. b. Separate the credit-granting function from the sales function. c. Personnel doing internal comparisons should be independent of those entering the original data. d. Anyone responsible for inputting sales and cash receipts transactions information into the computer should be denied access to cash. 2. Which one of the following is not an auditor’s concern about a key authorization point in the sales/collection cycle? a. The receiving room must have authorization before releasing items to inventory control. b. Credit must be authorized before the sale. c. Goods must be shipped after the authorization. d. Prices must be authorized. 3. Cash receipts from sales on account have been misappropriated. Which of the following acts would conceal this defalcation and be least likely to be detected by an auditor? a. Understating the sales journal. b. Overstating the accounts receivable control account. c. Overstating the accounts receivable subsidiary ledger. d. Understating the cash receipts journal. 4. Which of the following would be the best protection for a company that wishes to prevent the “lapping” of trade accounts receivable? a.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Chapter 14 - Chapter 14 Take Home Quiz Key 1. a. b. c. d....

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online