Which of the following is a question that the auditor would expect to find on the production process section of an internal control questionnaire?

A. Are all releases by storekeepers of raw materials from storage based on approved requisition documents?
B. Are vendors' invoices for raw materials approved for payment by an employee who is independent of the cash disbursements function?
C. Are signed checks for the purchase of raw materials mailed directly after signing without being returned to the person who authorized the invoice processing?
D. Are details of individual disbursements for raw materials balanced with the total to be posted to the appropriate general ledger account?


Answer: A

Business

You might also like to view...

Percentage of market share and rate of on-time deliveries are indicators of the ________ perspective.

A) quality management B) internal business C) customer D) learning and growth

Business

Cian, an automobile manufacturer, offers a new car model with features comparable to that of another popular brand. However, the Cian model is priced lower than its competitor and includes a longer warranty

Cian is most likely following a more-for-the-same strategy. Indicate whether the statement is true or false

Business

If a firm has a current ratio of 2, the subsequent receipt of a 60-day note receivable on account will cause the ratio to decrease

Indicate whether the statement is true or false

Business

Keeping a log of sexually harassing incidents against you is considered a bad idea because there is a good chance you will be sued for libel

Indicate whether the statement is true or false.

Business