Page 21 - eBook Audit Of Financial Statement Components

TUTORIAL

1. There are __________ classes of transactions in the sales and
collection cycle.

A Two
B Three
C Four
D Five

2. The decisions and processes necessary for the transfer of the
ownership of goods and services to the customers after they are
made available for sale refers to the:
A Payroll and Personnel cycle
B Sales and collection cycle
C Inventory and warehousing cycle
D Acquisition and payment cycle

3. Proper authorization for sales includes:
A Approval before shipping
B Credit approval
C Credit terms approval
D All of the above

4. Which of the following is an example of a control for the audit
objective that deals with recording sales correctly for the amount
of goods shipped?
A Authorized shipping documents
B Reconciliation of accounts receivable master file with general
ledger.
C Pre-numbered shipping documents
D Periodic statements sent to customers

5. Vouching refers to moving from the journals back to the source
documents, which is a test for:
A Occurrence
B Completeness
C Ordering
D All of the above

6. Which of the following is an example of a control for the audit
objective that deals with making sure the cash receipts are
deposited and recorded at the amount received?
A Independent bank reconciliation
B Restrictively endorsed check
C Recording cash on a daily basis
D Comparison of cash receipt totals to a summary report

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