Chapter 13, Part 2

The receiving clerk at Wattana Technologies examines incoming shipments and checks their purchase order numbers. A receiving report is then sent to accounts payable, where it is reconciled with the relevant purchase orders and invoices and payment is authorized. Which of the following would correct control weaknesses related to the clerk's activities?

Which of the following would be the best control to prevent receiving department employees from stealing inventory and claiming the ordered quantity wasn't received from the vendor?

Requiring all packing slips be reconciled to purchase orders before accepting a delivery of inventory would be most likely to prevent which of the following situations?

Which of the following threats is not specific to the purchase requisition process of the expenditure cycle?

Identify item below that is the biggest purchasing function cost driver.

Which control would best prevent payments made to fictitious vendors?

What is the main reason a list of potential alternative suppliers be maintained?

Which of the controls below would be least effective at preventing a company from ordering goods at a price higher than market?

An important control that can be used to reduce the risk of employee kickbacks is

What is the best way to prevent the acceptance of goods that were never ordered?

What control should be put in place that assigns responsibility for EFT payments made to vendors?

What control would best mitigate the threat of paying an invoice twice?

The management at Barks-a-Million is considering a new inventory control system. The current system is inadequate because it frequently causes stockouts that interrupt production and lead to excess stock of other materials — resulting in markdowns and high carrying costs. The new system will focus on ensuring that orders are placed with sufficient lead time to prevent stockouts by using

If duties are properly segregated, the authorization function is performed by ________, the recording function is performed by ________, and cash handling is performed by the ________.

A reverse auction would likely be best suited to the purchase of

Which of the following would probably be the least effective control to mitigate the risk of paying a phony invoice payable for inventory purchases that were never made?

Identify one way to improve the accuracy of inventory records that use a perpetual inventory approach

The management at Barks-a-Million is considering a new inventory control system. The current system is inadequate because it frequently causes stockouts that interrupt production and lead to excess stock of other materials — resulting in markdowns and high carrying costs. The new system will focus on reducing or completely eliminating carrying costs, most likely employing

Comparing quantities on a vendor invoice to quantities on the receiving report would not prevent or detect which of the following situations?

What is the best control to mitigate the threat of paying prices that are too high for goods ordered?

The receiving clerk at Wattana Technologies examines incoming shipments and reconciles their contents with the relevant purchase orders. A receiving report is then sent to accounts receivable and the vendor's invoice is approved for payment. Which of the following would correct control weaknesses related to these activities?

Why would a firm perform ABC cost analysis?

To accomplish the objectives set forth in the expenditure cycle, a number of key management decisions must be addressed. Which of the decisions below is not ordinarily found as part of the expenditure cycle?

Restricting access to the approved supplier list can

In the expenditure cycle, good control dictates that expenditures should be paid by check. This may not be feasible when minor purchases are made. To facilitate quick payment for minor purchases, a(n) ________ should be set up and maintained using ________.

Which of the following is not a common control for ensuring inventory is secure and inventory counts are accurate?

Which of the following controls would be the least effective in preventing paying the same invoice twice?

Evaluated receipt settlement approves payment of vendor invoices after reconciling the purchase order and the

Identify the most accurate statement below.

One way a firm could reduce the risk of problems with supplier dependability is to

The management at Barks-a-Million is considering a new inventory control system. The current system is inadequate because it frequently causes stockouts that interrupt production and lead to excess stock of other materials — resulting in markdowns and high carrying costs. The new system will focus on ensuring that these costs are minimized. The new inventory control system will likely employ

Anong Mali is the purchasing manager at Wattana Technologies. She has responsibility for reviewing and authorizing purchase orders. Receiving reports are prepared by shipping and receiving based on the relevant purchase order(s). Purchase orders, receiving reports, and vendor invoices are reconciled by accounts payable, which authorizes payment. Which of the following would correct control weaknesses related to these activities?

Anong Mali is the purchasing manager at Wattana Technologies. She has responsibility for reviewing and authorizing purchase orders. She also reviews receiving reports, approves or corrects them, and authorizes the cashier to pay vendor invoices. Which of the following would correct control weaknesses related to these activities?

A surprise count of an imprest petty cash fund should find the total of ________ equal to the amount authorized for the fund.

The management at Barks-a-Million is considering a new inventory control system. The current system is inadequate because it frequently causes stockouts that interrupt production and lead to excess stock of other materials — resulting in markdowns and high carrying costs. The new system, which will focus on forecasting demand for Sad Clown's products, will likely employ

MacDougalKids is a mid-sized manufacturer of organic baby food. MacDougalKids uses a JIT inventory management approach. Which of the following factors would likely be least important when selecting inventory suppliers?