DeVry ACCT 444 Week 1-5 Complete Quizzes

Selling of goods for cash
8. (TCO 9) The credit-granting functions should be separated from which of the following?
(Points : 3)
Purchasing functions
Manufacturing function
Sales function
None of the above
9. (TCO 9) When designing substantive tests of transactions for sales, the auditor is concerned
with the possibility of several types of misstatements. Which of the following is not one of the types of
these misstatements? (Points : 3)
Sales being included in the journal for which no shipment was made
Sales to related parties, such as officers and subsidiaries
Sales recorded more than once
Shipments being made to nonexistent customers and recorded as sales
10. (TCO 9) A key internal control in the sales and collection cycle is the separation of duties
between cash handling and record keeping. The objective most directly associated with this control is
to verify that (Points : 3)
cash receipts recorded in the cash receipts journal are reasonable.
cash receipts are properly classified.
recorded cash receipts result from legitimate transactions.
existing cash receipts are recorded.
10. (TCO 9) Which one of the following would the auditor consider to be an incompatible
operation if the cashier receives remittances from the mailroom? (Points : 3)
The cashier prepares the daily deposit.
The cashier makes the deaily deposit at a local bank.
The cashier posts the receipts to the accounts receivable subsidiary ledger cards.
The cashier endorses the checks.