SOLVED

26) For effective internal control purposes, the vouchers payable department generally should: A) obliterate the quantity ordered on the receiving department copy of the purchase order. B) stamp, perforate, or otherwise cancel supporting documentation after payment is mailed. C) establish the agreement of the vendor’s invoice with the receiving report and purchase order. D) ascertain that each requisition is approved as to price, quantity, and quality by an authorized employee. 27) An auditor performs a test to determine whether all merchandise for which the client was billed was received. The population for this test consists of all: A) merchandise received. B) vendors’ invoices. C) canceled checks. D) receiving reports. 28) Matching the supplier’s invoice, the purchase order, and the receiving report prior to preparing the voucher would normally be the responsibility of the: A) warehouse receiving function. B) purchasing function. C) general accounting function. D) treasury function. 29) A CPA learns that his client has paid a vendor twice for the same shipment, once based upon the original invoice and once based upon the monthly statement. A control procedure that should have prevented this duplicate payment is: A) attachment of the receiving report to the disbursement report. B) prenumbering of disbursement vouchers. C) use of a limit or reasonableness test. D) prenumbering of receiving reports. 30) With respect to a small company’s system of purchasing supplies, an auditor’s primary concern should be to obtain satisfaction that supplies ordered and paid for have been: A) requested by and approved by authorized individuals who have no incompatible duties. B) used in the course of business and solely for business purposes during the year under audit. C) received, counted, and checked to quantities and amounts on purchase orders and invoices. D) properly recorded as assets and systematically amortized over the estimated useful life of the supplies. 31) Authorization for accepting goods in the receiving department should be based on: A) Vendor Invoice. B) Requisition Request. C) Purchase order from the purchasing department. D) Vendor Statement.