13. For effective internal control, the accounts payable department generally should
a. Stamp, perforate, or otherwise cancel supporting documentation after payment is mailed.
b. Ascertain that each requisition is approved as to price, quantity, and quality by an authorized employee.
c. Obliterate the quantity ordered on the receiving department copy of the purchase order.
d. Establish the agreement of the vendor's invoice with the receiving report and purchase order.
14. Which of the following questions would most likely be included in an internal control questionnaire concerning the completeness assertion for purchases?
a. Is an authorized purchase order required before the receiving department can accept a shipment or the vouchers payable department can record a voucher?
b. Are purchase requisitions prenumbered and independently matched with vendor invoices?
c. Is the unpaid voucher file periodically reconciled with inventory records by an employee who does not have access to purchase requisitions?
d. Are purchase orders, receiving reports, and vouchers pre-numbered and periodically accounted for?
15. To provide assurance that each voucher is submitted and paid only once, an auditor most likely would examine a sample of paid vouchers and determine whether each voucher is
a. Supported by a vendor's invoice.
b. Stamped "paid" by the check signer.
c. Pre-numbered and accounted for.
d. Approved for authorized purchases.
16. When the shipping department returns nonconforming goods to a vendor, the purchasing department should send to the accounting department the
a. Unpaid voucher.
b. Debit memo.
c. Vendor invoice.
d. Credit memo.
17. The authority to accept incoming goods in receiving should be based on a(an)
a. Vendor's invoice.
b. Materials requisition.
c. Bill of lading.
d. Approved purchase order.
This solution assists in understanding internal controls.