The documents in a voucher packet include all of the following except
a purchase order
a receiving report
The greatest advantage of the automated inventory system over its manual counterpart is improved ability to manager inventory needs
Vendors approved by an organization are maintained in a valid vendor file. Insuring that vendors used are in the valid vendor file will insure the most competitive price will be obtained
Which document helps to ensure that the receiving clerks actually count the number of goods received?
blind copy of purchase order
Which document typically triggers the process of recording a liability?
Which of the following tasks should the cash disbursement clerk NOT perform?
review the supporting documents for completeness and accuracy
approve the liability
mark the supporting documents paid
Which of the following is not a major risk exposures associated with the receiving department?
goods are accepted without a physical count
there is no inspection for goods damaged in shipment
inventories are not secured on the receiving dock
the audit trail is destroyed
Which statement is NOT correct for a cash disbursement system with proper internal controls?
The bank reconcilement should be an independent verification (ie: by Controller)
The accounts payable function authorizes the cash disbursement via the cash disbursement voucher
The accounts payable function prepares the cash disbursement check
Separate the accounts payable, cash disbursements and general ledger functions
Goods received are inspected and counted to
determine that the goods are in good condition
determine the quantity of goods received
preclude payment for goods not received or received in poor condition
all of the above
Close supervision in the receiving department reduces the risks of both theft of assets and failure to properly inspect assets