Connect Access Card for Principles of Auditing & Other Assurance Services
21st Edition
ISBN: 9781260299366
Author: Ray Whittington, Kurt Pany
Publisher: McGraw-Hill Education
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Question
Chapter 14, Problem 13RQ
To determine
Provide internal control in case of failure of the invoice payment within the discount period.
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Students have asked these similar questions
what possible internal control weaknesses occured that resulted to unintentional duplicate payment of bills?
The following are key controls over the purchasing and disbursement cycle except:
A. Proper authorization of purchases
B.Timely recording of transactions including independent review
C. Proper authorization of disbursement
D. Segregation of duties between the credit department and custody
which of the following account will be least likely involved in the purhasing sub-process of the purchasing and disbursement cycle?
a. proper authorization of purchases
b. timely recording of transactions including independent review
c. proper authorization of disbursements
d. segragration of duties between the credit department and custody
Chapter 14 Solutions
Connect Access Card for Principles of Auditing & Other Assurance Services
Ch. 14 - If a corporation overstates its earnings, are its...Ch. 14 - Prob. 2RQCh. 14 - Prob. 3RQCh. 14 - Prob. 4RQCh. 14 - Prob. 5RQCh. 14 - Prob. 6RQCh. 14 - Prob. 7RQCh. 14 - Prob. 8RQCh. 14 - List the major responsibilities of an accounts...Ch. 14 - Prob. 10RQ
Ch. 14 - Prob. 11RQCh. 14 - Prob. 12RQCh. 14 - Prob. 13RQCh. 14 - Prob. 14RQCh. 14 - Prob. 15RQCh. 14 - Prob. 16RQCh. 14 - Prob. 17RQCh. 14 - Whitehall Company records its liabilities in an...Ch. 14 - Prob. 19RQCh. 14 - Prob. 20RQCh. 14 - Prob. 21RQCh. 14 - Prob. 22RQCh. 14 - What is the purpose of the auditors review of cash...Ch. 14 - Prob. 24RQCh. 14 - Prob. 25RQCh. 14 - Prob. 26RQCh. 14 - Prob. 27QRACh. 14 - Prob. 28QRACh. 14 - Prob. 29QRACh. 14 - Prob. 30QRACh. 14 - Prob. 31QRACh. 14 - Prob. 32QRACh. 14 - Which of the following procedures is least likely...Ch. 14 - Prob. 33BOQCh. 14 - Which of the following is the best audit procedure...Ch. 14 - Prob. 33DOQCh. 14 - Prob. 33EOQCh. 14 - Prob. 33FOQCh. 14 - Prob. 33GOQCh. 14 - Prob. 33HOQCh. 14 - Ordinarily, the most significant assertion...Ch. 14 - Prob. 33JOQCh. 14 - Prob. 33KOQCh. 14 - Prob. 33LOQCh. 14 - Prob. 34OQCh. 14 - Prob. 35OQCh. 14 - Prob. 36OQCh. 14 - Prob. 37OQCh. 14 - Prob. 38PCh. 14 - Prob. 39PCh. 14 - Prob. 40PCh. 14 - Prob. 41PCh. 14 - Prob. 42PCh. 14 - Prob. 43ITC
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Similar questions
- Describe how prenumbered shipping papers and sales invoices may be effective controls for avoiding sales misstatements.arrow_forwardWhat is the purpose of the following control procedures (i.e., what threats is it designed to mitigate)? c. Direct deposit of paychecks.arrow_forwardWhat feature of the acquisition and expenditure control would be expected to prevent an employee’s embezzling cash through creation of fictitious vouchers?arrow_forward
- Which of the following tasks should the cash disbursement clerk NOT perform?a. review the supporting documents for completeness and accuracyb. prepare checksc. approve the liabilityd. mark the supporting documents paidarrow_forwardDescribe the Sarbanes Oxley Act and its impact on internal controls and financial reporting? Describe the objectives and elements of internal control? Describe the common classes of receivables? Describe the accounting for collectable receivables? Compare the direct write-off and allowance methods of accounting for noncollectable accounts?arrow_forwardCan you explain how the internal control of Documentation Procedure is violated in this question? after payment, bills are filed in a "paid invoice" folder.arrow_forward
- Which of the following internal control activities will most likely prevent the concealment of a cash shortage by improperly writing off a trade account receivable?a. Write-offs must be approved by a responsible officer after review of credit department recommendations and supporting evidence.b. Write-offs must be supported by an aging schedule showing that only receivables overdue several months have been written off.c. Write-offs must be approved by the cashier who is in a position to know whether the receivables have, in fact, been collected.d. Write-offs must be authorized by company field sales employees who are in a position to determine customers’ financial standing.arrow_forwardChoose the one correct answer. Which of the following Test of Controls is done to examine whether purchase orders, receiving reports and vouchers are prenumbered and accounted for? *Select samples from creditors list and send creditors’ confirmation. Examine evidence of approval of unusual trade terms and discounts. Trace samples of goods received notes to the related suppliers’ invoices and entries in the purchase journal and in creditors’ ledger. Review bank statements for any unrecorded cheques payments.arrow_forward1. How may an employee embezzle funds by issuing an unauthorized sales credit memo if the appropriate segregation of functions and authorization controls were not in place? Please asnwer this. thank youuuarrow_forward
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