ACG 4401 Final Exam, Florida Atlantic University, 2026 – Accounting
and Financial Reporting Study and Review Material
The first step in a business 2 business sales transaction with an existing customer is - correct
answer ✔✔ receipt of purchase of purchase order (i.e., Sales Order Entry)
Which department(s) should not have access to customers' checks/payments? - correct answer
✔✔ Accounts receivable/billing
Which department should have authorization in a sales order transaction? - correct answer ✔✔
Credit
Which department(s) should have access/custody to a company's inventory assets? - correct
answer ✔✔ Inventory control / shipping
Which of the following is the first step when choosing a vendor for the first time? - correct
answer ✔✔ Requirement determination
Which function should the Purchasing department have in the expenditure cycle (i.e., what did I
say in the tips video this department had)? - correct answer ✔✔ Authorization
What did I say when covering the slides was the biggest threat to the "approving invoice"
process? - correct answer ✔✔ Fictitious invoices
Goods should be shipped to a customer after the bill (invoice) was sent. - correct answer ✔✔
False
The context DFD of the expenditure cycle indicates that a purchase order is sent to the vendor
who later sends an invoice to the customer. - correct answer ✔✔ True
, Failure to send a bill (invoice) is a threat in the expenditure cycle. - correct answer ✔✔ False
According to the JOA article about Walmart's AI-powered store, which of the following
statements is FALSE? - correct answer ✔✔ Walmarts AI powered store will be duplicated exactly
in all 4800 stores across the US.
Which of the following expenditure cycle activities can be eliminated through the use of IT or
reengineering? - correct answer ✔✔ Approving vendor invoices
In the revenue cycle, which department has the same function (i.e., authorization, record
keeping, and custody ) as Billing and A/R? - correct answer ✔✔ General Ledger
Most costs are locked in at which stage in the production cycle? - correct answer ✔✔ Product
design
Which of the following represents a sales order process threat (the first process in an existing
business relationship)? - correct answer ✔✔ Stockouts
In the JOA article "Billing Schemes, Part 1, Shell Companies... "why did Dennis (the internal
auditor) feel lucky at the end of the story? - correct answer ✔✔ Because his company got most
of the money back.
Which if the following represents an appropriate control to prevent paying the same invoice
twice? - correct answer ✔✔ Issuing checks only for complete voucher packages.
Which of the following is NOT a threat in the expenditure cycle relating to cash disbursements?
- correct answer ✔✔ Inventory theft
and Financial Reporting Study and Review Material
The first step in a business 2 business sales transaction with an existing customer is - correct
answer ✔✔ receipt of purchase of purchase order (i.e., Sales Order Entry)
Which department(s) should not have access to customers' checks/payments? - correct answer
✔✔ Accounts receivable/billing
Which department should have authorization in a sales order transaction? - correct answer ✔✔
Credit
Which department(s) should have access/custody to a company's inventory assets? - correct
answer ✔✔ Inventory control / shipping
Which of the following is the first step when choosing a vendor for the first time? - correct
answer ✔✔ Requirement determination
Which function should the Purchasing department have in the expenditure cycle (i.e., what did I
say in the tips video this department had)? - correct answer ✔✔ Authorization
What did I say when covering the slides was the biggest threat to the "approving invoice"
process? - correct answer ✔✔ Fictitious invoices
Goods should be shipped to a customer after the bill (invoice) was sent. - correct answer ✔✔
False
The context DFD of the expenditure cycle indicates that a purchase order is sent to the vendor
who later sends an invoice to the customer. - correct answer ✔✔ True
, Failure to send a bill (invoice) is a threat in the expenditure cycle. - correct answer ✔✔ False
According to the JOA article about Walmart's AI-powered store, which of the following
statements is FALSE? - correct answer ✔✔ Walmarts AI powered store will be duplicated exactly
in all 4800 stores across the US.
Which of the following expenditure cycle activities can be eliminated through the use of IT or
reengineering? - correct answer ✔✔ Approving vendor invoices
In the revenue cycle, which department has the same function (i.e., authorization, record
keeping, and custody ) as Billing and A/R? - correct answer ✔✔ General Ledger
Most costs are locked in at which stage in the production cycle? - correct answer ✔✔ Product
design
Which of the following represents a sales order process threat (the first process in an existing
business relationship)? - correct answer ✔✔ Stockouts
In the JOA article "Billing Schemes, Part 1, Shell Companies... "why did Dennis (the internal
auditor) feel lucky at the end of the story? - correct answer ✔✔ Because his company got most
of the money back.
Which if the following represents an appropriate control to prevent paying the same invoice
twice? - correct answer ✔✔ Issuing checks only for complete voucher packages.
Which of the following is NOT a threat in the expenditure cycle relating to cash disbursements?
- correct answer ✔✔ Inventory theft
