CMPC 312 EXAM PREP WITH COMPLETE
SOLUTION
These are the test of controls in the revenue/sales cycle, except:
a) Selling (Authorization)
b) Purchasing (Authorization)
c) Delivery (Custody)
d) Accounting (Recording)
e) Collection - =b) Purchasing (Authorization)
These are the test of controls in the purchase/disbursement cycle, except:
a) Purchasing (Authorization)
b) Receipt of goods (Custody)
c) Collection
d) Accounting (Recording)
e) Disbursement - =c) Collection
designed to ensure safe custody - =Inventory Controls
It can be very important in audit because of the high value of inventory or the complexity of its
audit - =Inventory System
Key controls over payroll cycle, except:
a) Disbursement
b) Documentation and authorization of staff changes
SOLUTION
These are the test of controls in the revenue/sales cycle, except:
a) Selling (Authorization)
b) Purchasing (Authorization)
c) Delivery (Custody)
d) Accounting (Recording)
e) Collection - =b) Purchasing (Authorization)
These are the test of controls in the purchase/disbursement cycle, except:
a) Purchasing (Authorization)
b) Receipt of goods (Custody)
c) Collection
d) Accounting (Recording)
e) Disbursement - =c) Collection
designed to ensure safe custody - =Inventory Controls
It can be very important in audit because of the high value of inventory or the complexity of its
audit - =Inventory System
Key controls over payroll cycle, except:
a) Disbursement
b) Documentation and authorization of staff changes
