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GLEIM’S CPA TEST PREP AUDITING EXAM LATEST 2025 ACTUAL
EXAM WITH COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (100% VERIFIED ANSWERS) |ALREADY GRADED A+|
||PROFESSOR VERIFIED|| ||BRANDNEW!!!||
A university does not have a centralized receiving function for
departmental purchases of books, supplies, and equipment.
Which of the following controls will most effectively prevent
payment for goods not received, if performed prior to invoice
payment?
A. Names and addresses on vendor invoices should be compared
to a list of department-authorized vendors.
B. Vendor invoices should be approved by a departmental
supervisor other than the employee ordering the goods.
C. Vendor invoices should be matched with department purchase
orders.
D. Invoices over a specified amount should be approved by the
vice president of finance. - ANSWER-B
The principal function of a cash budget is to
A. Ensure that the accounting records are accurate.
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B. Ensure that the accounting principles relevant to cash
transactions are applied consistently from period to period.
C. Implement asset and liability maturity matching.
D. Physically safeguard cash. - ANSWER-C
In a well-designed internal control system, the same employee
may be permitted to
A. Approve vouchers for payment and also have access to
unused purchase orders.
B. Mail signed checks and also prepare bank reconciliations.
C. Mail signed checks and also cancel supporting documents.
D. Prepare receiving reports and also approve purchase orders. -
ANSWER-C
Which of the following internal control activities is not usually
performed in the vouchers payable department?
A. Accounting for unused prenumbered purchase orders and
receiving reports.
B. Indicating the asset and expense accounts to be debited.
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C. Approving vouchers for payment by having an authorized
employee sign the vouchers.
D. Matching the vendor's invoice with the related receiving report.
- ANSWER-A
Operating control of the check-signing machine normally should
be the responsibility of the
A. Legal counsel.
B. Internal audit function.
D. General accounting function. - ANSWER-C
C. Treasury function.
Which of the following questions is inappropriate on an internal
control questionnaire concerning purchase transactions?
A. Are an approved purchase requisition and a signed purchase
order required for each purchase?
B. Are prenumbered purchase orders and receiving reports used
and accounted for?
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C. Are all goods received in a centralized receiving department
and counted, inspected, and compared with purchase orders on
receipt?
D. Are intact cash receipts deposited daily in the bank? -
ANSWER-D
In assessing risks of material misstatement for purchases, an
auditor vouches a sample of entries in the voucher register to the
supporting documents. Which assertion would this test of controls
most likely support?
A. Occurrence.
B. Classification.
C. Accuracy.
D. Completeness. - ANSWER-A
Your objective is to determine that nonrecurring purchases,
initiated by various user organizations, have been properly
authorized. If all purchases are made through the purchasing
department, to which of the following documents should you
vouch purchases?
GLEIM’S CPA TEST PREP AUDITING EXAM LATEST 2025 ACTUAL
EXAM WITH COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (100% VERIFIED ANSWERS) |ALREADY GRADED A+|
||PROFESSOR VERIFIED|| ||BRANDNEW!!!||
A university does not have a centralized receiving function for
departmental purchases of books, supplies, and equipment.
Which of the following controls will most effectively prevent
payment for goods not received, if performed prior to invoice
payment?
A. Names and addresses on vendor invoices should be compared
to a list of department-authorized vendors.
B. Vendor invoices should be approved by a departmental
supervisor other than the employee ordering the goods.
C. Vendor invoices should be matched with department purchase
orders.
D. Invoices over a specified amount should be approved by the
vice president of finance. - ANSWER-B
The principal function of a cash budget is to
A. Ensure that the accounting records are accurate.
,2|Page
B. Ensure that the accounting principles relevant to cash
transactions are applied consistently from period to period.
C. Implement asset and liability maturity matching.
D. Physically safeguard cash. - ANSWER-C
In a well-designed internal control system, the same employee
may be permitted to
A. Approve vouchers for payment and also have access to
unused purchase orders.
B. Mail signed checks and also prepare bank reconciliations.
C. Mail signed checks and also cancel supporting documents.
D. Prepare receiving reports and also approve purchase orders. -
ANSWER-C
Which of the following internal control activities is not usually
performed in the vouchers payable department?
A. Accounting for unused prenumbered purchase orders and
receiving reports.
B. Indicating the asset and expense accounts to be debited.
,3|Page
C. Approving vouchers for payment by having an authorized
employee sign the vouchers.
D. Matching the vendor's invoice with the related receiving report.
- ANSWER-A
Operating control of the check-signing machine normally should
be the responsibility of the
A. Legal counsel.
B. Internal audit function.
D. General accounting function. - ANSWER-C
C. Treasury function.
Which of the following questions is inappropriate on an internal
control questionnaire concerning purchase transactions?
A. Are an approved purchase requisition and a signed purchase
order required for each purchase?
B. Are prenumbered purchase orders and receiving reports used
and accounted for?
, 4|Page
C. Are all goods received in a centralized receiving department
and counted, inspected, and compared with purchase orders on
receipt?
D. Are intact cash receipts deposited daily in the bank? -
ANSWER-D
In assessing risks of material misstatement for purchases, an
auditor vouches a sample of entries in the voucher register to the
supporting documents. Which assertion would this test of controls
most likely support?
A. Occurrence.
B. Classification.
C. Accuracy.
D. Completeness. - ANSWER-A
Your objective is to determine that nonrecurring purchases,
initiated by various user organizations, have been properly
authorized. If all purchases are made through the purchasing
department, to which of the following documents should you
vouch purchases?
