QUESTION: 145

Which of the following is not an appropriate control related to sales in a manufacturing company?

Customers' orders are recorded promptly.
Goods shipped are matched with valid customer orders.
Goods returned are inspected for damage by the sales department and then entered into inventory.
Credit department approval is required for credit sales transactions.

Answer(s): C

QUESTION: 146

The percentage of orders that are rush orders and the percentage of returns to total orders are examples of which of the following types of control activities?

Quality control monitoring.
Direct functional management.
Benchmarking.
Performance indicators.

Answer(s): D

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QUESTION: 147

The best reason for separating the cash-receiving function from the related record- keeping function is to

Segregate cash payments from cash receipts.
Provide accountability for cash received.
Minimize misappropriations in cash receipts.
Improve physical security over the cash-receiving function.

Answer(s): C

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QUESTION: 148

Which of the following would be the least effective in preventing purchasing agents from taking kickbacks or gifts from vendors in exchange for favorable contracts?

A specific corporate policy prohibiting the acceptance of anything of value from a vendor.
A corporate code of ethics prohibiting any activity that might impair objectivity.
A requirement for purchasing agents to develop a company profile of each new vendor before it is added to the authorized vendor list.
The establishment of long-term contracts with major vendors, with the contract terms approved by senior management.

Answer(s): C

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QUESTION: 145

QUESTION: 146

QUESTION: 147

QUESTION: 148

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