An Internal Control Questionnaire Indicates That an Approved Receiving Report

question 34

Multiple Choice

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 earlier than the receiving reports.
• B)Select and examine receiving reports and test whether the related canceled checks are dated no later than the receiving reports.
• C)Select and examine canceled checks and test whether the related receiving reports are dated no earlier than the checks.
• D)Select and examine canceled checks and test whether the related receiving reports are dated no later than the checks.

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Definitions:

Rubric

A set of guidelines or criteria used to evaluate or score performance, products, or responses in a consistent and standardized manner.

Critical Thinking

The intellectual discipline of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and/or evaluating information gathered from, or generated by, observation, experience, reflection, reasoning, or communication.

Analytical

Pertaining to the systematic examination and evaluation of data or information, often by breaking it into its component parts to uncover their interrelationships.

Destructive

Causing great and irreparable harm or damage.