ACCT 401 - Chapter 18 Quiz
fully solved & updated
While performing an internal control audit in conformity with PCAOB
AS 2201, the auditors must be able to identify both control
strengths and control weaknesses. Items (1) through (11) present
various control strengths and deficiencies. For each item, select
from the following list the appropriate response.
A. Control strength for the revenue cycle (including cash receipts).
B. Control deficiency for the revenue cycle (including cash receipts).
C. Control strength unrelated to the revenue cycle.
1. Credit is granted by a credit department.
2. Sales returns are presented to a sales department clerk, who
prepares a written prenumbered shipping report.
3. Statements are sent monthly to customers.
4. Write-offs of accounts receivable are approved by the controller.
5. Cash disbursements over $10,000 require two signatures on the
check.
6. Cash receipts received in the mail are received by a secretary
with no record-k - answer 1. A
2. B
3. A
4. B
5. C
6. A
7. B
8. B
fully solved & updated
While performing an internal control audit in conformity with PCAOB
AS 2201, the auditors must be able to identify both control
strengths and control weaknesses. Items (1) through (11) present
various control strengths and deficiencies. For each item, select
from the following list the appropriate response.
A. Control strength for the revenue cycle (including cash receipts).
B. Control deficiency for the revenue cycle (including cash receipts).
C. Control strength unrelated to the revenue cycle.
1. Credit is granted by a credit department.
2. Sales returns are presented to a sales department clerk, who
prepares a written prenumbered shipping report.
3. Statements are sent monthly to customers.
4. Write-offs of accounts receivable are approved by the controller.
5. Cash disbursements over $10,000 require two signatures on the
check.
6. Cash receipts received in the mail are received by a secretary
with no record-k - answer 1. A
2. B
3. A
4. B
5. C
6. A
7. B
8. B
