Final Exam Chapter 9

Question 1

is a recurring set of business activities and related information processing operations associated with purchasing goods and services, and paying for those goods and services

Answer 1

expenditure cycle

Question 2

what do you do if you are having problems with inaccurate or invalid master data

Answer 2

employee data processing integrity controls
restrict access to master data
review all changes to master data

Question 3

what do you do if you are having problems with unauthorized disclosure of sensitive information

Answer 3

use physical and logical access controls and encrypt data

Question 4

what do you do if you are having problems with loss of destruction of data

Answer 4

back up data regularly

implement a disaster recovery plan

Question 5

what do you do if you are having problems with poor performance

Answer 5

use managerial reports to evaluate company and individual performance

Question 6

trigger purchase requisition generate purchase order

Answer 6

ordering goods and services

Question 7

accept delivery, count and inspect goods

Answer 7

reviewing and storing goods

Question 8

approve vendor invoices and pay vendor invoices

Answer 8

paying for goods and services

Question 9

paper document or electronic form that formally requests a supplier to sell and deliver specified products at specified prices

Answer 9

purchase order

Question 10

committed to purchase specified items at a designated price from a particular supplier for a set period of time

Answer 10

blanket purchase order

Question 11

paper document or electronic form that tells you who is requesting the goods where and when they should be delivered, the quantity of the items and department number and account number to be charged

Answer 11

purchase requisition for goods

Question 12

what can you included to make ordering items more efficient

Answer 12

EDI to transmit purchase orders vendor managed inventory systems reverse auctions and pre award audits

Question 13

what can you do to help prevent inaccurate inventory records

Answer 13

use perpetual inventory method
use barcodes and RFID tags
conduct periodic physical counts of inventory

Question 14

what do you do to prevent purchasing items that are not needed

Answer 14

us the perpetual inventory method
review and approve purchase requisitions
centralize the purchasing function

Question 15

whatdo you do to prevent purchasing goods at inflated prices

Answer 15

store and consult price lists for frequently purchased items
solicit competitive written bids for high cost and specialized products
review purchase orders to ensure policies have been followed
use budgetary controls

Question 16

what can you do to prevent purchasing goods of inferior quality

Answer 16

purchase only from approved suppliers
review and approve purchase form new suppliers
hold purchasing managers responsible for rework and scrap costs
track and monitor product quality by supplier

Question 17

what can you do to prevent purchasing from unreliable suppliers

Answer 17

require suppliers to possess quality certification

collect and monitor supplier delivery performance data

Question 18

what can you do to prevent purchasing form unauthorized suppliers

Answer 18

maintain a list of approved suppliers
configure the system to permit purchase orders only to approve suppliers
review and approve purchase form new suppliers
employ EDI specific controls for purchase orders

Question 19

how do you prevent kickbacks from suppliers

Answer 19

require purchasing agents to disclose financial and personal interests suppliers
prohibit purchasing agents from accepting any gifts from potential existing suppliers
train employees in how to respond to offers of gifts from suppliers
rotate job duties
require vacation leave
conduct supplier audits

Question 20

what do you do about accepting unordered items

Answer 20

require existence of an approved purchase order prior to accepting any delivery

Question 21

what do you do to prevent mistakes in counting

Answer 21

do not inform the receiving employees about the quantity ordered
require the receiving employees to sign receiving reports to create accountability
offer incentives for catching discrepancies
document transfer of goods to inventory
use bar codes or RFID tags
configure system to flag discrepancies between received and ordered quantities

Question 22

what do you do to verify receipt of services

Answer 22

hold supervisors responsible for all costs
compare actual v. budgeted expenses and investigate discrepancies
conduct periodic reviews of contracts for services including audits of supplier records

Question 23

what do you do to in the case of theft of inventory

Answer 23

restrict physical access to inventory
document all transfers of inventory between receiving and inventory employees
conduct periodic physical counts of inventory and reconcile to recorded quantities
segregate inventory receiving recording and custody functions

Question 24

what do you do in the case of errors in supplier invoices

Answer 24

verify the mathematical accuracy of the invoices
require detailed receipts for procurement cards and verify monthly statement accuracy
use an ERS system
restrict access to the supplier master data
verify accuracy of freight charges

Question 25

what do you do if you are having mistakes in a/p

Answer 25

use appropriate data entry and processing controls | reconcile subsidiary accounts payable records with the general control account

Question 26

what do you do if you are having problems with taking advantage of discounts for prompt payment

Answer 26

file invoices by due date of discounts design systems to track due dates prepare cash flow budgets

Question 27

what do you do if you are having problems paying for items not yet recieved

Answer 27

require that all suppler invoices be matched to supporting documents from both the receiving and inventory control departments for services have tight budgetary controls and carefully review departmental expenses Require receipts for travel expenses use corporate credit cards for travel expenses

Question 28

what do you do if you are having problems with duplicate payments

Answer 28

require a complete voucher package for all payments | cancel all supporting documents when a payment is made

Question 29

what do you do if you are having theft of cash problems

Answer 29

restrict physical access to cash, blank checks and check signing machines have checks numbered sequentially and periodically accounted for by the cashier segregations of duties require 2 signatures restrict access to the approved supplier list have an independent party reconcile bank statements

Question 30

how do you deal with the theft of petty cash

Answer 30

handled by an employee who has no other cash handling or accounting responsibilities set up an imprest fund cancel the vouchers when the fund is replenished audit the fund on a surprise basis and hold the person in charge of the fund responsible for shortages

Question 31

how do you deal with Electronic funds transfer fraud

Answer 31

use strict physical and logical access controls log user and location of originating terminal encrypt all transactions use embedded audit modules to electronically monitor the transactions and flag suspicious items use a dedicated computer and browser for online banking place ACH blocks on accounts not used for payments

Question 32

how do you deal with check alterations

Answer 32

use check protection machines that imprint amounts use inks that are difficult to alter print checks on watermarked paper set up a positive pay arrangement with the bank do a bank reconciliation promptly

Question 33

attributes about an entity

Answer 33

field

Question 34

related group of fields

Answer 34

record

Question 35

related group of records

Answer 35

file

Question 36

related group of files

Answer 36

database

Question 37

fles are logically compinedes and made accessible to various systems

Answer 37

data integrations

Question 38

with data in one place it is more easily accessed by authorized users

Answer 38

data sharing

Question 39

eliminates the same data being stored in multiple files thus reducing inconsistency in multiple versions of the same data

Answer 39

minimizing data redundancy and data inconsistency

Question 40

data is separate from the programs that access it changes can be made to the data without a change in the programs and vice versa

Answer 40

data independence

Question 41

relationships between data from various organizational department can be more easily combined

Answer 41

cross-functional analysis

Question 42

interface between software applications and the data in files

Answer 42

database management systems

Question 43

person responsible for maintaining the data base

Answer 43

database administrator

Question 44

information about the structure of the database

Answer 44

data dictionary

Question 45

depends on explicitly knowing how the data is actually arranged in a file and where the data is stored on the computer

Answer 45

physical view

Question 46

a schema separates storage of data from use of the data and unnecessary to explicitly know how and where data is sotred

Answer 46

logical view

Question 47

an attribute or combination of attributes that can be used to uniquely identify a specific row in a table

Answer 47

primary key

Question 48

an attribute in one table that is a primary key in another table

Answer 48

foreign key

Question 49

changes to existing data are not correctly recorded due to multiple records with the sam data attributes

Answer 49

update anomaly

Question 50

unable to add a record to the data base

Answer 50

insert anomaly

Question 51

removing a record also removes unintended data from the database

Answer 51

delete anomaly

Question 52

4 requirements for a rational database

Answer 52

1. every column must be single valued 2. primary keys must contain data 3. foreign keys must contain the same data as the primary key in another table 4. all other attributes must identify a characteristic of the table identified by the primary key