1. Which of the following procedures provides substantial assurance that invoices are paid for merchandise actually ordered and received in satisfactory condition?
a. The purchasing department sends copies of the purchase requisition to the accounts payable department and the supplier.
b. The receiving department counts all merchandise received.
c. The accounts payable department sends purchase requisitions to the purchasing department and the stores department.
d. The accounts payable department matches the purchase requisition, purchase order, receiving report, and invoice.
e. The stores department sends copies of the invoices to the receiving department and the insurance department.
2. Which of the following in an internal control procedure would prevent a paid disbursement voucher from being presented for payment a second time?
a. Vouchers should be prepared by individuals who are responsible for signing disbursement checks.
b. Disbursement vouchers should be approved by at least two responsible management officials.
c. The date on a disbursement voucher should be within a few days of the date the voucher is presented for payment.
d. The official signing the check should compare the check with the voucher and should deface the voucher documents.
3. An effective internal accounting control measure that protects against the preparation of improper or inaccurate disbursements would be to require that all checks be
a. Signed by an officer after necessary supporting evidence has been examined.
b. Reviewed by the treasurer before mailing.
c. Numbered sequentially and accounted for by internal auditors.
d. Perforated or otherwise effectively canceled when they are returned with the bank statement.
4. Which of the following is an effective internal accounting control over cash payments?
a. Signed checks should be mailed under the supervision of the check signer.
b. Spoiled checks that have been voided should be disposed of immediately.
c. Checks should be prepared only by people responsible for cash receipts and cash disbursements.
d. A check- signing machine with two signatures should be used.
5. In a properly designed accounts payable system,
a Voucher is prepared after the invoice, purchase order, requisition, and receiving report are verified. The next step in the system is to a. cancel the supporting documents.
b. Enter the check amount in the check register.
c. Approve the voucher for payment.
d. Post the voucher amount to the expense ledger.
6. For the most effective internal accounting control, monthly bank statements should be received directly from the banks and reviewed by the
b. Cash receipts accountant.
c. Cash disbursements accountant.
d. Internal auditor.
7. In a properly designed internal accounting control system, the same employee may be permitted to
a. Receive and deposit checks and also approve write- offs of customer accounts.
b. Approve vouchers for payment and also sign checks.
c. Reconcile the bank statements and also receive and deposit cash.
d. Sign checks and also cancel supporting documents.
8. In a properly designed internal accounting control system, the same employee should not be permitted to
a. Sign checks and cancel supporting documents.
b. Receive merchandise and prepare a receiving report.
c. Prepare disbursement vouchers and sign checks.
d. Initiate a request to order merchandise and approve merchandise received.
9. For effective internal accounting control, the accounts payable department should compare the information on each vendor’s invoice with the
a. Receiving report and the purchase order.
b. Receiving report and the voucher.
c. Vendor’s packing slip and the purchase order.
d. Vendor’s packing slip and the voucher.