Question

A company acquires a(n) ____ to reimburse the company in the event of an employee fraud.

(2pts)

indemnity contract

fraud option contract

defalcation policy

fidelity bond

None of the above

32)

Pick and pack is a step in the

(2pts)

order-to-cash process

pay-to-play process

general ledger process

purchase-to-pay process

All of the above

None of the above

33)

Assuring that cash collections recorded in the cash receipts event data are credited to the right customer in the accounts receivable master data addresses the control goal of:

(2pts)

ensure input completeness

ensure update completeness

ensure update accuracy

ensure input accuracy

All of the above

None of the above

34)

When prenumbered documents are used in random order in a batch data entry process, a ______ would likely be used at the start of the batch processing run as a check for omitted documents.

(2pts)

confirm input acceptance check

key verification check

hash total check

cumulative sequence check

All of the above

None of the above

35)

Establishing a viable internal control system is primarily the responsibility of _____.

(2pts)

the external auditors

government authorities

the internal auditors

programmers

All of the above

None of the above

36)

A warehouse supervisor prepares a sales order listing items to be shipped to a customer and then signs it approving the removal of the items from the warehouse. The supervisor is performing which functions?

(2pts)

authorizing and executing events

executing and recording events

authorizing events and safeguarding of resources

authorizing and recording events

All of the above

None of the above

Answer 1

1) A company acquires a(n) Fidelity bond to reimburse the company in the event of an employee fraud. Fidelity bond usually insures a business for losses caused by the dishonest acts of its employees.

2) Pick and pack is a step in the:   order-to-cash process: In this case from order receipt, picking packing to payment receipt is covered.

3) Assuring that cash collections recorded in the cash receipts event data are credited to the right customer in the accounts receivable master data addresses the control goal of:      ensure update accuracy- This updates completely.

4) When prenumbered documents are used in random order in a batch data entry process, a ______ would likely be used at the start of the batch processing run as a check for omitted documents.

Hash total check : A summation of any numeric data existing for all documents in the batch, such as a total of customer numbers or invoice numbers in the case of remittance advices; used for control purposes only. Thus this option is aapropriate.