chapter 8 - Practice Multiple Choice Questions for Payroll...

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Practice Multiple Choice Questions for Payroll, Sales and Collections, Acquisitions and Payment Processes 1. The internal auditor is reviewing shipping procedures of a manufacturing company. The auditor should be greatly concerned when a. merchandise is shipped without an approved customer’s order. b. invoiced prices on merchandise are not checked before the orders are shipped. c. the sales department is not promptly notified when merchandise is shipped. d. only one quotation on transportation costs is obtained. e. transportation tariffs are not checked before merchandise is shipped. 2. Which of the following is an effective internal accounting control over accounts receivable? 3. Which of the following would be the best protection for a company that wishes to prevent the “lapping” of trade accounts receivable? 4. Matching the supplier’s invoice, the purchase order, and the receiving report normally should be the responsibility of the 5. To avoid potential errors and irregularities, a well designed system of internal accounting control in the accounts payable area should include a separation of which of the following functions? a. cash disbursements and vendor invoice verification b. vendor invoice verification and merchandise ordering c. physical handling of merchandise received and preparation of receiving reports d. check signing and cancelation of payment documentation
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