MGMT 443 Quiz 6 Chapters 12 and 16
Exam 2026 Questions and Answers
Graded A+
In a well-designed internal control system, employees in the same department most
likely would approve purchase orders, and also:
A. Reconcile the open invoice file
B. Inspect goods upon receipt
C. Authorize requisitions of goods
D. Negotiate terms with vendors - Correct answer-Answer: D
In a well-designed internal control system, the same employee may be permitted to
A. Mail signed checks and also cancel supporting documents
B. Prepare receiving reports and also approve purchase orders
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,C. Approve vouchers for payment and also have access to unused purchase orders
D. Mail signed checks and also prepare bank reconciliations - Correct answer-
Answer: A
Which of the following internal control activities is not usually performed in the
vouchers payable department
A. Matching the vendor's invoice with the related receiving report
B. Approving vouchers for payment by having an authorized employee sign the
vouchers
C. Indicating the asset and expense accounts to be debited
D. Accounting for unused pre-numbered purchase orders and receiving reports -
Correct answer-Answer: D
Operating control of the check-signing machine normally should be the
responsibility of the
A. General accounting function
B. Treasury function
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,C. Legal counsel
D. Internal audit function - Correct answer-Answer: B
In assessing risks of material misstatement for purchases, an auditor vouches a
sample of entries in the voucher register to the supporting documents. Which
assertion would this test of controls most likely support?
A. Completeness
B. Occurrence
C. Accuracy
D. Classification - Correct answer-Answer: B
Effective controls relevant to purchasing raw materials should usually include all
of the following except
A. Systematic reporting of product changes that will affect raw materials
B. Determining the need for the raw materials prior to preparing the purchase order
C. Obtaining third-party written quality and quantity reports prior to payment for
the raw materials
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, D. Obtaining financial approval prior to making a commitment - Correct answer-
Answer: C
Based on observations made during an audit, the auditor should discuss with
management the effectiveness of the company's controls that protect against the
purchase of
A. Required supplies provided by a vendor who offers no trade or cash discounts
B. Inventory items acquired based on an economic order quantity (EOQ) inventory
management concept
C. New equipment that is needed but does not qualify for an accelerated write-off
under the class life rules
D. Supplies individually ordered, without considering possible volume discounts -
Correct answer-Answer: D
Effective controls relevant to the efficiency of purchases will result in proper
evaluation of the time for ordering merchandise. When making this evaluation, the
purchasing company should give primary consideration to
©COPYRIGHT 2026, ALL RIGHTS RESERVED 4
Exam 2026 Questions and Answers
Graded A+
In a well-designed internal control system, employees in the same department most
likely would approve purchase orders, and also:
A. Reconcile the open invoice file
B. Inspect goods upon receipt
C. Authorize requisitions of goods
D. Negotiate terms with vendors - Correct answer-Answer: D
In a well-designed internal control system, the same employee may be permitted to
A. Mail signed checks and also cancel supporting documents
B. Prepare receiving reports and also approve purchase orders
©COPYRIGHT 2026, ALL RIGHTS RESERVED 1
,C. Approve vouchers for payment and also have access to unused purchase orders
D. Mail signed checks and also prepare bank reconciliations - Correct answer-
Answer: A
Which of the following internal control activities is not usually performed in the
vouchers payable department
A. Matching the vendor's invoice with the related receiving report
B. Approving vouchers for payment by having an authorized employee sign the
vouchers
C. Indicating the asset and expense accounts to be debited
D. Accounting for unused pre-numbered purchase orders and receiving reports -
Correct answer-Answer: D
Operating control of the check-signing machine normally should be the
responsibility of the
A. General accounting function
B. Treasury function
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,C. Legal counsel
D. Internal audit function - Correct answer-Answer: B
In assessing risks of material misstatement for purchases, an auditor vouches a
sample of entries in the voucher register to the supporting documents. Which
assertion would this test of controls most likely support?
A. Completeness
B. Occurrence
C. Accuracy
D. Classification - Correct answer-Answer: B
Effective controls relevant to purchasing raw materials should usually include all
of the following except
A. Systematic reporting of product changes that will affect raw materials
B. Determining the need for the raw materials prior to preparing the purchase order
C. Obtaining third-party written quality and quantity reports prior to payment for
the raw materials
©COPYRIGHT 2026, ALL RIGHTS RESERVED 3
, D. Obtaining financial approval prior to making a commitment - Correct answer-
Answer: C
Based on observations made during an audit, the auditor should discuss with
management the effectiveness of the company's controls that protect against the
purchase of
A. Required supplies provided by a vendor who offers no trade or cash discounts
B. Inventory items acquired based on an economic order quantity (EOQ) inventory
management concept
C. New equipment that is needed but does not qualify for an accelerated write-off
under the class life rules
D. Supplies individually ordered, without considering possible volume discounts -
Correct answer-Answer: D
Effective controls relevant to the efficiency of purchases will result in proper
evaluation of the time for ordering merchandise. When making this evaluation, the
purchasing company should give primary consideration to
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