Chapter 1-3, 15 & 16

Question 1

SOD Recording

Answer 1

Create/enter transactions; edit transactions before approval

Question 2

SOD Authorization

Answer 2

Create/edit master data, perform reconciliations, approve transactions

Question 3

SOD Custody

Answer 3

Maintain physical custody of assets (cash and inventory)

Question 4

Batch vs. Real Time Processing

Answer 4

Batch: Transactions are kept in a temporary file then uploaded together in a batch at a scheduled time.
Real-Time: When transactions are entered they instantly update the permanent place of record

Question 5

Sequence codes

Answer 5

Data is numbered consecutively (check numbers in order)

Question 6

Block/Group codes

Answer 6

Data is grouped by number prefixes (COA Assets=1 Liabilities=2)

Question 7

Mnemonic Codes

Answer 7

Data is organized with both letters and numbers

Question 8

ERP’s

Answer 8

Expensive, but can integrate all of a companies data into one place.

Question 9

Accrual vs Deferral

Answer 9

Accrual: Cash later
Deferral: Cash now

Question 10

XBRL

Answer 10

Extensive Business Reporting Language, tags each item.
SEC requires that XBRL data is filed quarterly and annually

Question 11

Where are adjusting Journal Entries saved?

Answer 11

General Journal

Question 12

Controller Job

Answer 12

Begins the Closing process, closes the books

Question 13

6 Ongoing Process Controls

Answer 13

1) Validity check
2) Field or Format check
3) Zero-balance check
4) Completeness check
5) Sign check
6) Limit check

Question 14

Validity check

Answer 14

Checks that data exists elsewhere in the master data

Question 15

Field/Format check

Answer 15

Checks that data is in the proper format (zip code must be numbers)

Question 16

Zero-balance check

Answer 16

Verifies that the transaction zeros out

Question 17

Completeness check

Answer 17

Ensures that all data is entered before proceeding

Question 18

Sign check

Answer 18

Requires that data is appropriately positive or negative

Question 19

Limit check

Answer 19

Won’t allow the transaction to proceed a certain dollar threshold

Question 20

How frequently should data be backed up?

Answer 20

Daily

Question 21

Data flow diagram

Answer 21

Shows processes of an entire department

Question 22

Document Flowchart

Answer 22

Shows the flow of documents within a department

Question 23

Systems Flowchart

Answer 23

Shows inputs/outputs of computer systems

Question 24

Program flowchart

Answer 24

Logic for software to follow (If yes than xx; if no then yy)

Question 25

Payroll Register

Answer 25

Summarizes the payroll JE's by employee

Question 26

Withholding's (payroll)

Answer 26

Employee portion of taxes or insurance

Question 27

Imprest account for payroll

Answer 27

Bank account where the exact payroll amount is deposited before checks are disbursed.

Question 28

HR Department Responsibilities

Answer 28

Hiring/Firing/Promoting and controls employee master data

Question 29

Payroll Department Responsibilities

Answer 29

Executes payroll, reviews tax transactions

Question 30

AP Department Responsibilities

Answer 30

Approves payroll for payment, pay for inventory, supplies and services.

Question 31

Cashier Responsibilities

Answer 31

Print and mail payroll checks

Question 32

Which document triggers the JE Wage Expense Withholding Wages Payable

Answer 32

Payroll Register