Accounting Information Systems: The Processes and Controls, 2nd Edition

END OF CHAPTER MATERIAL

CONCEPT CHECK

1. 1. Within the revenue processes, a signed approval of a sales order indicates all of the following except
   1. date of delivery
   2. sale to an accepted customer
   3. approval of the customer's credit
   4. correct sales price
2. 2. An example of an independent verification in the sales process is
   1. preparation of packing lists on prenumbered forms
   2. initialing the sales order
   3. proof of recorded dates, quantities, and prices on an invoice
   4. physical controls in record storage areas
3. 3. The purpose of tracing shipping documents to prenumbered sales invoices would be to provide evidence that
   1. shipments to customers were properly invoiced
   2. no duplicate shipments or billings occurred
   3. goods billed to customers were shipped
   4. all prenumbered sales invoices were accounted for
4. 4. The purpose of tracing sales invoices to shipping documents would be to provide evidence that
   1. shipments to customers were properly invoiced
   2. no duplicate shipments or billings occurred
   3. goods billed to customers were shipped
   4. all prenumbered sales invoices were accounted for
5. 5. To ensure that all credit sales transactions of an entity are recorded, which of the following controls would be most effective?
   1. On a monthly basis, the accounting department supervisor reconciles the accounts receivable subsidiary ledger to the accounts receivable control account.
   2. The supervisor of the accounting department ...