1|Page
Gleim’s CPA Test Prep Auditing Complete 100
Questions And Correct Detailed Answers (Verified
Answers) |Already Graded A+|| LATEST EXAM!!!
A university does not have a centralized receiving function
for departmental purchases of books, supplies, and
equipment. Which of the following controls will most
effectively prevent payment for goods not received, if
performed prior to invoice payment?
A. Names and addresses on vendor invoices should be
compared to a list of department-authorized vendors.
B. Vendor invoices should be approved by a departmental
supervisor other than the employee ordering the goods.
C. Vendor invoices should be matched with department
purchase orders.
D. Invoices over a specified amount should be approved
by the vice president of finance. - ANSWER-B
The principal function of a cash budget is to
A. Ensure that the accounting records are accurate.
B. Ensure that the accounting principles relevant to cash
transactions are applied consistently from period to period.
C. Implement asset and liability maturity matching.
D. Physically safeguard cash. - ANSWER-C
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In a well-designed internal control system, the same
employee may be permitted to
A. Approve vouchers for payment and also have access to
unused purchase orders.
B. Mail signed checks and also prepare bank
reconciliations.
C. Mail signed checks and also cancel supporting
documents.
D. Prepare receiving reports and also approve purchase
orders. - ANSWER-C
Which of the following internal control activities is not
usually performed in the vouchers payable department?
A. Accounting for unused prenumbered purchase orders
and receiving reports.
B. Indicating the asset and expense accounts to be
debited.
C. Approving vouchers for payment by having an
authorized employee sign the vouchers.
D. Matching the vendor's invoice with the related receiving
report. - ANSWER-A
Operating control of the check-signing machine normally
should be the responsibility of the
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A. Legal counsel.
B. Internal audit function.
C. Treasury function.
D. General accounting function. - ANSWER-C
Which of the following questions is inappropriate on an
internal control questionnaire concerning purchase
transactions?
A. Are an approved purchase requisition and a signed
purchase order required for each purchase?
B. Are prenumbered purchase orders and receiving
reports used and accounted for?
C. Are all goods received in a centralized receiving
department and counted, inspected, and compared with
purchase orders on receipt?
D. Are intact cash receipts deposited daily in the bank? -
ANSWER-D
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. Occurrence.
B. Classification.
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C. Accuracy.
D. Completeness. - ANSWER-A
Your objective is to determine that nonrecurring
purchases, initiated by various user organizations, have
been properly authorized. If all purchases are made
through the purchasing department, to which of the
following documents should you vouch purchases?
A. Purchase requisitions.
B. Purchase orders.
C. Invoices.
D. Receiving reports. - ANSWER-A
Effective controls relevant to purchasing of raw materials
should usually include all of the following except
A. Obtaining third-party written quality and quantity reports
prior to payment for the raw materials.
B. Obtaining financial approval prior to making a
commitment.
C. Systematic reporting of product changes that will affect
raw materials.
D. Determining the need for the raw materials prior to
preparing the purchase order. - ANSWER-A
Gleim’s CPA Test Prep Auditing Complete 100
Questions And Correct Detailed Answers (Verified
Answers) |Already Graded A+|| LATEST EXAM!!!
A university does not have a centralized receiving function
for departmental purchases of books, supplies, and
equipment. Which of the following controls will most
effectively prevent payment for goods not received, if
performed prior to invoice payment?
A. Names and addresses on vendor invoices should be
compared to a list of department-authorized vendors.
B. Vendor invoices should be approved by a departmental
supervisor other than the employee ordering the goods.
C. Vendor invoices should be matched with department
purchase orders.
D. Invoices over a specified amount should be approved
by the vice president of finance. - ANSWER-B
The principal function of a cash budget is to
A. Ensure that the accounting records are accurate.
B. Ensure that the accounting principles relevant to cash
transactions are applied consistently from period to period.
C. Implement asset and liability maturity matching.
D. Physically safeguard cash. - ANSWER-C
,2|Page
In a well-designed internal control system, the same
employee may be permitted to
A. Approve vouchers for payment and also have access to
unused purchase orders.
B. Mail signed checks and also prepare bank
reconciliations.
C. Mail signed checks and also cancel supporting
documents.
D. Prepare receiving reports and also approve purchase
orders. - ANSWER-C
Which of the following internal control activities is not
usually performed in the vouchers payable department?
A. Accounting for unused prenumbered purchase orders
and receiving reports.
B. Indicating the asset and expense accounts to be
debited.
C. Approving vouchers for payment by having an
authorized employee sign the vouchers.
D. Matching the vendor's invoice with the related receiving
report. - ANSWER-A
Operating control of the check-signing machine normally
should be the responsibility of the
,3|Page
A. Legal counsel.
B. Internal audit function.
C. Treasury function.
D. General accounting function. - ANSWER-C
Which of the following questions is inappropriate on an
internal control questionnaire concerning purchase
transactions?
A. Are an approved purchase requisition and a signed
purchase order required for each purchase?
B. Are prenumbered purchase orders and receiving
reports used and accounted for?
C. Are all goods received in a centralized receiving
department and counted, inspected, and compared with
purchase orders on receipt?
D. Are intact cash receipts deposited daily in the bank? -
ANSWER-D
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. Occurrence.
B. Classification.
, 4|Page
C. Accuracy.
D. Completeness. - ANSWER-A
Your objective is to determine that nonrecurring
purchases, initiated by various user organizations, have
been properly authorized. If all purchases are made
through the purchasing department, to which of the
following documents should you vouch purchases?
A. Purchase requisitions.
B. Purchase orders.
C. Invoices.
D. Receiving reports. - ANSWER-A
Effective controls relevant to purchasing of raw materials
should usually include all of the following except
A. Obtaining third-party written quality and quantity reports
prior to payment for the raw materials.
B. Obtaining financial approval prior to making a
commitment.
C. Systematic reporting of product changes that will affect
raw materials.
D. Determining the need for the raw materials prior to
preparing the purchase order. - ANSWER-A
