True False

Integrated IT systems that are used to conduct internet sales in a business to customer manner are referred to as e-commerce.

Regardless of how effective and good the accounting system is, if top management is intent on falsifying financial statements by inflating revenue, they can usually find ways to misstate revenue.

A purchase requisition is essentially an internal document, one that does not go outside the company, whereas a purchase order is an external document, which will be presented to an entity outside the company.

The use of a blind purchase order forces the receiving clerk to perform an independent check of the quantity and quality of the delivery.

The accounts payable department keeps copies of purchase orders and receiving reports, that will be compared to the related invoice, to be sure that the invoices represent goods that were ordered and received.

Independent reconciliation of the accounts payable subsidiary ledger to the general ledger control account will help to assure that all inventory has been properly recorded.

When an invoice is paid, it should be canceled to indicate that it has been paid.

Only the purchasing department should authorize the processing of a cash disbursement transaction.

When an automated matching system is used, all of the relevant files must be online (or in databases). The system can then access the online purchase order and receiving files and check the match of items, quantities, and prices.

Computer logs should be maintained in order to have a complete record of who used the system and the histories of that use. This computer log would allow monitoring and identification of unauthorized accesses or uses.

A purchase order is essentially an internal document, one that does not go outside the company, whereas a purchase requisition is an external document, which will be presented to an entity outside the company.

Independent reconciliation of the periodic inventory counts and the inventory ledger and the general ledger will help to assure that inventory is being properly accounted for.

Most companies conduct business transactions with checks so that a written record is established for cash disbursements.

If the purchasing, receiving, accounts payable, and cash disbursements processes are completed by the same individuals, the internal controls will be stronger because someone in the company will have an overall view of company activities.