An internal control questionnaire indicates that an approved receiving report is required to accompany every check request for payment of merchandise. Which of the following procedures provides the best evidence on operating effectiveness?
A. Select and examine receiving reports and test whether the related canceled checks are dated no later than the receiving reports.
B. Select and examine canceled checks and test whether the related receiving reports are dated no earlier than the checks.
C. Select and examine receiving reports and test whether the related canceled checks are dated no earlier than the receiving reports.
D. Select and examine canceled checks and test whether the related receiving reports are dated no later than the checks.
Answer: D
You might also like to view...
In a traditional operating environment, a company usually
a. plans by using pull-through production scheduling. b. has long production runs with infrequent setups. c. maintains a minimum inventory level. d. uses a multiskilled work force.
Which of the following costs are relatively easier to allocate using volume–based cost systems and drivers?
a. Product design costs b. Factory rent costs c. Direct material costs d. Setup costs
A company's decision on where to locate a new factory is most likely a result of:
A) operating activities. B) operational planning. C) strategic planning. D) controlling activities.
What is the term used to describe the arrangement when an organisation contracts with another organisation to provide specific HR services or activities:
a. outsourcing b. in-sourcing c. over-sourcing d. open sourcing