Which of the Following Should Sign Checks Under Conditions of Effective
Which of the following should sign checks under conditions of effective internal control?
B) Purchasing agent
C) Accounts payable clerk
D) Person preparing the checks
Internal controls that are likely to prevent the client from including as a business expense those transactions that primarily benefit management or other employees rather than the entity being audited satisfy the control objective that:
A) acquisitions are correctly valued.
B) existing acquisitions are recorded.
C) acquisitions are correctly classified.
D) recorded acquisitions are for goods and services received.
The test of transactions which requires one to "reconcile recorded cash disbursements with the cash disbursements on the bank statement" satisfies the objective of:
D) posting and summarization.
For effective internal control purposes,the vouchers payable department generally should:
A) approve the purchase order.
B) have the authority to sign the checks.
C) establish the agreement of the vendor's invoice with the receiving report and purchase order.
D) supervise the preparation of the receiving report.