1|Page
Gleim’s CPA Test Prep Auditing Complete 100
Questions And 100%Correct Detailed Answers
(Verified And Graded A+)Brand New!!!
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.
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D. Invoices over a specified amount should be approved
by the vice president of finance. - ANSWER-B
A control that a company can use to detect forged EDI
messages is to
A. Delay action on orders until a second order is received
for the same goods.
B. Permit only authorized employees to have access to
transmission facilities.
C. Write all incoming messages to a write-once/read-many
device for archiving.
D. Acknowledge all messages initiated externally with
confirming messages. - ANSWER-D
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Electronic data interchange (EDI) offers significant benefits
to organizations, but it is not without certain major
obstacles. Successful EDI implementation begins with
which of the following?
A. Selecting reliable vendors for translation and
communication software.
B. Purchasing new hardware for the EDI system.
C. Standardizing transaction formats and data.
D. Mapping the work processes and flows that support the
organization's goals. - ANSWER-D
Which of the following is usually a benefit of transmitting
transactions in an electronic data interchange (EDI)
environment?
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A. A compressed business cycle with lower year-end
receivables balances.
B. An increased opportunity to apply statistical sampling
techniques to account balances.
C. No need to rely on third-party service providers to
ensure security.
D. A reduced need to test computer controls related to
sales and collections transactions. - ANSWER-A
Which of the following is not a principal objective of the
auditor in the audit of revenues?
A. To obtain an understanding of internal control and
assess the risks of material misstatement, with particular
Gleim’s CPA Test Prep Auditing Complete 100
Questions And 100%Correct Detailed Answers
(Verified And Graded A+)Brand New!!!
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.
,2|Page
D. Invoices over a specified amount should be approved
by the vice president of finance. - ANSWER-B
A control that a company can use to detect forged EDI
messages is to
A. Delay action on orders until a second order is received
for the same goods.
B. Permit only authorized employees to have access to
transmission facilities.
C. Write all incoming messages to a write-once/read-many
device for archiving.
D. Acknowledge all messages initiated externally with
confirming messages. - ANSWER-D
,3|Page
Electronic data interchange (EDI) offers significant benefits
to organizations, but it is not without certain major
obstacles. Successful EDI implementation begins with
which of the following?
A. Selecting reliable vendors for translation and
communication software.
B. Purchasing new hardware for the EDI system.
C. Standardizing transaction formats and data.
D. Mapping the work processes and flows that support the
organization's goals. - ANSWER-D
Which of the following is usually a benefit of transmitting
transactions in an electronic data interchange (EDI)
environment?
, 4|Page
A. A compressed business cycle with lower year-end
receivables balances.
B. An increased opportunity to apply statistical sampling
techniques to account balances.
C. No need to rely on third-party service providers to
ensure security.
D. A reduced need to test computer controls related to
sales and collections transactions. - ANSWER-A
Which of the following is not a principal objective of the
auditor in the audit of revenues?
A. To obtain an understanding of internal control and
assess the risks of material misstatement, with particular
