LSU ACCT 3222 WILEY TEST 1 2026 FINAL
PAPER 164 QUESTIONS WITH COMPLETE
SOLUTIONS VERIFIED STUDY SET GRADED
A+
⩥ independent checks of performance.
Answer: reviews carried out by employees who did not do the same
work to ensure reliability of accounting information and efficiency of
operations (bank reconciliations to verify reconciles book and ledger,
cross footing, counts on inventory during periodic counting,
comparisons, number sequencing, recalculations)
-make sure record keeping is done correctly and completely
-different person needs to check than the person originally doing the job
-one checking cannot be related to to make sure maintained (will be
asked if you know anyone at a particular company before doing
auditing)
-indicated by initialing the document
-when the government started requiring banks to report interest income
to the IRS, interest income reported on tax returns increased
tremendously to show you reported was accurate
⩥ transaction authorization (verified credit sale conforms to established
policies and procedures and not selling to deadbeats).
,Answer: approves credit and initials approval on customer purchase
order
⩥ adequate documents and records (bill of lading ensures customer will
be billed for shipments).
Answer: internal control used when preparing a bill of lading
⩥ adequate documents and records (sales recorded in sales or cash
disbursements and not recorded multiple times).
Answer: prepares a pre numbered sales invoice
⩥ independent checks of performance (Nancy filled it out, Jim makes
sure she made no mistakes when filling out the invoice).
Answer: reviews invoice and support documents for accuracy and
initials the invoice
⩥ adequate records and documents (provides an audit trail to verify the
accuracy of records).
Answer: staples the customer purchase order, bill of lading, and sales
invoice and files the documents
⩥ transaction authorization (approving the bad debt, reviewed and
agrees it cannot and will not be collected).
,Answer: initials the write off of uncollectible account in the general
journal and subsidiary ledger
⩥ joint custody.
Answer: -Nancy and Jim open the envelope and record the cash on cash
receipts pre list
-procedures where people are equally accountable for the physical
protection of certain items or records, the risk of fraud is reduced
because each clerk knows he or she is being observed by the other only
collusion can bypass them
⩥ access control (prevents unauthorized people from cashing the check
if it is stolen or lost, someone else cannot deposit that check because
made for particular account).
Answer: restrictively endorse check
⩥ segregation of duties (creates separation between book keeping and
custody of assets).
Answer: enter the check information on the cash receipts pre list (can
take the pre list and record it in the books and the person with the cash
can go to the bank and cash the check)
Ray has accèss to cash not records; Jim access to accounting but not
cash
, ⩥ independent check of performance (verifies money was deposited in
bank and amounts are correct).
Answer: agrees deposit receipt and cash receipts pre list to cash receipts
journal, initials journal
⩥ independent check of performance (determination of the reasons for
the difference between cash in the bank statement and general ledger).
Answer: prepares bank reconciliation on separate working paper
⩥ independent check on performance (send statement to customer to
provide check on accuracy of seller and buyer records).
Answer: prepares monthly statement for each customer with a balance
⩥ independent check of performance (verify transactions have been
properly recorded in general ledger and A/R sub ledger).
Answer: foots the balance in the A/R sub ledger and compares total to
general ledger, initials the ledger control account
⩥ independent check on performance (making sure properly recorded).
Answer: cross foot the sales and cash receipts journal
⩥ adequate documents and records (verify transactions posted to general
ledger).
PAPER 164 QUESTIONS WITH COMPLETE
SOLUTIONS VERIFIED STUDY SET GRADED
A+
⩥ independent checks of performance.
Answer: reviews carried out by employees who did not do the same
work to ensure reliability of accounting information and efficiency of
operations (bank reconciliations to verify reconciles book and ledger,
cross footing, counts on inventory during periodic counting,
comparisons, number sequencing, recalculations)
-make sure record keeping is done correctly and completely
-different person needs to check than the person originally doing the job
-one checking cannot be related to to make sure maintained (will be
asked if you know anyone at a particular company before doing
auditing)
-indicated by initialing the document
-when the government started requiring banks to report interest income
to the IRS, interest income reported on tax returns increased
tremendously to show you reported was accurate
⩥ transaction authorization (verified credit sale conforms to established
policies and procedures and not selling to deadbeats).
,Answer: approves credit and initials approval on customer purchase
order
⩥ adequate documents and records (bill of lading ensures customer will
be billed for shipments).
Answer: internal control used when preparing a bill of lading
⩥ adequate documents and records (sales recorded in sales or cash
disbursements and not recorded multiple times).
Answer: prepares a pre numbered sales invoice
⩥ independent checks of performance (Nancy filled it out, Jim makes
sure she made no mistakes when filling out the invoice).
Answer: reviews invoice and support documents for accuracy and
initials the invoice
⩥ adequate records and documents (provides an audit trail to verify the
accuracy of records).
Answer: staples the customer purchase order, bill of lading, and sales
invoice and files the documents
⩥ transaction authorization (approving the bad debt, reviewed and
agrees it cannot and will not be collected).
,Answer: initials the write off of uncollectible account in the general
journal and subsidiary ledger
⩥ joint custody.
Answer: -Nancy and Jim open the envelope and record the cash on cash
receipts pre list
-procedures where people are equally accountable for the physical
protection of certain items or records, the risk of fraud is reduced
because each clerk knows he or she is being observed by the other only
collusion can bypass them
⩥ access control (prevents unauthorized people from cashing the check
if it is stolen or lost, someone else cannot deposit that check because
made for particular account).
Answer: restrictively endorse check
⩥ segregation of duties (creates separation between book keeping and
custody of assets).
Answer: enter the check information on the cash receipts pre list (can
take the pre list and record it in the books and the person with the cash
can go to the bank and cash the check)
Ray has accèss to cash not records; Jim access to accounting but not
cash
, ⩥ independent check of performance (verifies money was deposited in
bank and amounts are correct).
Answer: agrees deposit receipt and cash receipts pre list to cash receipts
journal, initials journal
⩥ independent check of performance (determination of the reasons for
the difference between cash in the bank statement and general ledger).
Answer: prepares bank reconciliation on separate working paper
⩥ independent check on performance (send statement to customer to
provide check on accuracy of seller and buyer records).
Answer: prepares monthly statement for each customer with a balance
⩥ independent check of performance (verify transactions have been
properly recorded in general ledger and A/R sub ledger).
Answer: foots the balance in the A/R sub ledger and compares total to
general ledger, initials the ledger control account
⩥ independent check on performance (making sure properly recorded).
Answer: cross foot the sales and cash receipts journal
⩥ adequate documents and records (verify transactions posted to general
ledger).
