A. Clerk 1 opens all of the incoming mail.B. Clerk 2 reconciles the accounts payable ledger with the general ledger monthly.C. Clerk 3 mails the checks and remittances after they have been signed.D. The treasurer uses a stamp for signing checks.Which of the following situations could most likely lead to an embezzlement scheme?A. The accounts receivable bookkeeper receives a list of payments prepared by the cashier and personally makes entries in the customers' accounts receivable subsidiary ledger.B. Each vendor invoice is matched with the related purchase order and receiving report by the vouchers payable bookkeeper who personally approves the voucher for payment.C. Access to blank checks and signature plates is restricted to the cash disbursements bookkeeper who personally reconciles the monthly bank statement.D. Vouchers and supporting documentation are examined and then canceled by the treasurer who personally mails the checks to vendors.Which of the following activities performed by a department supervisor would most likely help in the prevention or detection of a payroll fraud?A. Distributing paychecks directly to department employees.B. Setting the pay rate for departmental employees.
C. Hiring employees and authorizing them to be added to payroll.D. Approving a summary of hours each employee worked during the pay period.Which of the following payroll control activities would most effectively ensure that payment is made only for work performed?A. Require all employees to record arrival and departure by using the time clock.B. Have a payroll clerk recalculate all time cards.C. Require all employees to sign their time cards.D. Require employees to have their direct supervisors approve their time cards.In obtaining an understanding of a manufacturing entity's internal control structure concerning inventory balances, an auditor would most likelyA. Review the entity's descriptions of inventory policies and procedures.B. Perform test counts of inventory during the entity's physical count.C. Analyze inventory turnover statistics to identify slow-moving and obsolete items.D. Analyze monthly production reports to identify variances and unusual transactions.Equipment acquisitions that are misclassified as maintenance expense would most likely bedetected by an internal control procedure that provides forA. Segregation of duties of employees in the accounts payable department.B. Independent verification of invoices for disbursements recorded as equipment acquisitions.C. Investigation of variances within a formal budgeting system.D. Authorization by the board of directors of significant equipment acquisitions.Which of the following controls would a company most likely use to safeguard marketable securities when an independent trust agent is not employed?
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- Summer '15
- ACC 576, d., B., c.