Describe how prenumbered shipping papers and sales invoices may be effective controls for avoiding sales misstatements

Q: Discuss some measures that should be taken to maintain control over merchandise inventory.

A:

Q: A portion of a client’s inventory is in public warehouses. Evidence of the existence of this…

A: Existence assertion says that all assets and liabilities of the business present in the financial…

Q: Discuss how EDI creates an environment in which sensitive information, such as inventory amounts and…

A: Electronic Data Interchange: Electronic data interchange (EDI) is the channel between the computer…

Q: What is the major advantage of using a perpetual inventory system? a.) It provides efficient…

A: The perpetual inventory system is working on a continuous basis i.e it updates its record after each…

Q: .   c.   completeness of receivables.   d.  collectibility of the invoices.

A: The four qualities of a confirmation are as follows: Receipt. Responses can be written or spoken.…

Q: up of answer choices a.The personnel in the receiving department should be separated from the…

A: the purchase you also known as account payable system and the cash disbursement cycle execute the…

Q: Cash receipts from sales on account have been misappropriated. Which of the following acts would…

A: An auditor is an individual approved to survey and check the precision of budgetary records and…

Q: Discuss how the inventory process supports the production planning process and the risk to the…

A: The term inventory control process includes overseeing things from the second they are ordered all…

Q: For good internal control, the purchasing department should not be responsible for... Select one:…

A: Internal Control Internal controls are the mechanisms, rules, and procedures a company should need…

Q: Explain why a comparison of sales and inventory records would reveal a situation in which cash sales…

A: Internal controls are policies and procedures implemented by an organization to attain operational…

Q: Good internal controls in the revenue cycle should ensure all of the following except Select one: a.…

A: Introduction: Revenue: Sales called as Revenue to the business. Revenue is generated on selling…

Q: The auditor is concerned that fictitious sales have been recorded. Which of the following procedures…

A: Answer- Select a sample of recorded sales invoices and vouch to sales orders, shipping document…

Q: Which document authorizes the purchase of the inventory from an approved vendor? the petty cash…

A: A company purchases inventory works on it and sells them as finished product. So purchase plays an…

Q: Which of the following internal controls is the most effective in preventing employees from using…

A: Internal controls are those procedures which are implemented for achievement of objectives of…

Q: What internal control or procedure(s) would provide protection against the following threats? A…

A: Note: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…

Q: what are the objectives of eliminating the receiving function. What accounting/audit problems need…

A: Receiving Department:   The receiving department is in obligation of inspection and the receiving…

Q: The control procedure of cancelling the documents in a voucher package (invoices and goods receipt…

A: Solution: The control procedure of cancelling the documents in a voucher package is designed to…

Q: In a good internal control​ system, which of the following sets of documents is required for proper…

A: Solution: In a good internal control system, for approval of payment we should do 3 way matching…

Q: a) Prepare the purchase ledger (account payables) control account and the sales ledger (account…

A: (a)

Q: In response to the six primary physical control weaknesses that have been identified, make…

A: Physical control weaknesses: It is the  failure in the implementation or effectiveness of  physical…

Q: Why would Commodore’s auditor insist that Rob document any sales booked under the book-and-hold…

A: An auditor is someone who checks the correctness of commercial transactions that have been…

Q: One internal control that companies often have is an official “approved vendor” list for purchases.…

A: The approved vendor list (AVL) can be referred to as the list containing the information of the…

Q: Which of the following is a test of control relating to purchases? a. None of the options b. Give…

A: Test of controls refers to the audit procedure followed by the auditors while conducting an audit of…

Q: Which of the following will be the most appropriate test to determine wherether purchase orders are…

A: Purchase order: Purchase order is a document send by a buyer to seller indicating all the…

Q: Explain the significant inherent risks associated with inventory. Explain the process of physical…

A: Internal controls mean to control the internal activities of the company. the internal control is…

Q: oncealed larceny includes: stealing with no attempt to cover up the theft falsified receiving…

A: Internal control- It is a process of assuring to achieve organizational's objectives by doing…

Q: When performing tests of controls over cash sales, an auditor would use observation to test whether…

A: When performing tests of controls over cash sales, an auditor would use observation to test whether…

Q: Give two examples of physical control that the client can use to protect the asset or the record: 1.…

A: Perishable Goods are the goods that are of short life span and will spoil after a certain period of…

Q: 6. The use of prenumbered sales invoices is the primary control procedure to satisfy the assertion…

A: The use of prenumbered sales invoices is the primary control procedure to satisfy the objective of…

Q: A fraudulent sales order was prepared by an order entry clerk in an attempt to steal merchandise…

A: Detection of errors and frauds is the main aim of any internal control system or…

Q: hould be on basis of blind copy of purchase order provided not by the packing slip. The inventory…

A: The recommendations are given as,

Q: A serious exposure in the revenue cycle is customer dissatisfaction. What is the related threat and…

A: In this question we tell about a serious exposure in the revenue cycle is customer…

Q: Which internal control activity is being violated when the cashier in a retail store also records…

A: Segregation of duties is being violated when the cashier in a retail store also records the daily…

Q: When evaluating inventory controls, an auditor would be least likely toa. Inspect documents.b. Make…

A: Auditing:   In auditing, auditors verify the correctness and fair presentation of financial…

Q: Tests of Controls and Errors/Frauds. The following four questions are taken from an internal control…

A: The test of controls includes the procedures that are developed to generate evidence about…

Q: Sample Selection. Hunter McNeal is studying and evaluating Branyon’s internal controlsrelated to the…

A: Audit procedure:   Audit procedures are used by auditors to determine the quality of financial…

Q: Explain the importance of proper credit approval for sales. Whateffect do adequate controls in the…

A: Auditing is a process which is used by audit professionals to review or analyze the transactions and…

Q: Describe the flow of data in the purchasing process that is initiated when the purchasing…

A: A data flow diagram is a flow of data that analyzes the beginning criteria and end results of a…

Q: Discuss how EDI dealing with sensitive information, such as inventory amounts and price data, is no…

A: Electronic Data Interchange: Electronic data interchange (EDI) is the channel between the computer…

Q: Explain how prenumbered shipping documents and sales invoicescan be useful controls for preventing…

A: Prenumbering: It refers to the process of assigning of numbers to documents which can be identified.

Q: Which of the following is the best reason for prenumbering in numerical sequence documents such as…

A: Prenumbering of documents like shipping documents, sales invoices, and sales order means providing a…

Q: All of the following are documents used for inventory control except Oa. a receiving report. Ob. a…

A: There are various documents that works as evidence of a transaction.

Q: What is a walkthrough of a sales transaction? How can the walkthrough work complement the use of an…

A: Internal control- It is a process of assuring to achieve organizational's objectives by doing…

Q: The following set of items describes activities completed by a company in purchasing and paying for…

A: All documents attached to an invoice approval form are canceled before a check is signed.

Q: Why is it important for auditors to obtain control information over inventory count sheets or…

A: Auditing inventory is the process of cross-checking financial records with physical inventory and…

Q: A serious exposure for an organization that is connnected with the revenue cycle is the loss of…

A: In this question we asked about a serious exposure for an organization that is connnected with the…

Q: Which of the following is not an example of safeguarding inventory? a. physical devices such as…

A: From the given options, option (b) is the correct answer:   Explanation:   Returning inventory…

Q: Which of the following is not generally an internal control activity? a.Physically counting…

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: Discuss how the inventory process supports the production planning process and the risks to the…

A: Accounting Information System (AIS) is said to be the specialized subsystem of the Information…