An Internal Control Questionnaire Indicates That an Approved Receiving Report

question 27

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 greatest assurance that this control is operating effectively?

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

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Definitions:

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An economic measure that represents something measured over a specific period of time, such as income or expenditure, which contrasts with stock variables that are measured at a specific point in time.

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Structured lessons focused on teaching the skills and theory required to play the piano, often involving both practical and theoretical components.

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A sum of money lent by a bank to a borrower under agreed terms for repayment with interest.