Subsidiary ledgers are periodically reconciled with inventory control accounts. 0.25 / 0.25 pts Question 3 Which of the following would most likely be an internal control activity designed to detect errors and fraud concerning the custody of inventory? Periodic reconciliation of work in process with job cost sheets. Segregation of functions between general accounting and cost accounting. Independent comparisons of finished goods records with counts of goods on hand. Approval of inventory journal entries by the storekeeper. 0.25 / 0.25 pts Question 4 Independent internal verification of inventory (i.e., proper segregation of duties) occurs when employees who Issue raw materials obtain materials requisition for each issue and prepare daily totals of materials issued. Compare records of goods on hand with physical quantities do not maintain the records or have custody of the inventory.
7/6/2017 Ch 13 Practice Quiz: ACC4110X01 | Summer 2017 Bailey 3/6 Obtain receipts for the transfer of completed work to finished goods prepare a completed production report. Are independent of issuing production orders update records from completed job cost sheets and production cost reports on a timely basis. 0.25 / 0.25 pts Question 5 An auditor's test of controls over the issuance of raw materials to production would most likely include Reconciliation of raw materials and workinprogress perpetual inventory records to general ledger balances. Inquiry of the custodian about the procedures followed when defective materials are received from vendors. Observation that raw materials are stored in secure areas and that storeroom security is supervised by a responsible individual. Examination of materials requisitions and reperformance of client controls designed to process and record issuances.
- Summer '14
- 6th Marine Regiment