1.

Which of the following is not one of the auditor roles with respect to the fixed asset
system?
a) review of the authorization control procedures to determine the reasonableness of
authorizations used for acquisition of fixed assets
b) verify the location, condition and fair value of the organization fixed assets
c) ensure that the fixed assets are being used in accordance with the organization’s
policies and business practices
d) examine the supervision controls over the physical guarding of assets.

2. Under receive goods process, the fourth copy of the receiving report is sent to the AP
department. (FALSE)

3. All of the following are purchase processing procedure, except

a. Monitor Inventory Record
b. Update Inventory Record
c. Update Sales Journal
d. Receive Goods

4. AP clerk removes the liability by debiting the AP subsidiary account. (TRUE)

5. The AP function reviews the

a. General Ledger
b. Voucher Payable File
c. Inventory
d. Copy of the Prelist

6. Payroll Processing refers to the task of managing the payment of wages by a company
to its employees. (TRUE)

7. All of the following are payroll processing procedure, except

a. Identify Liability Due
b. Prepare Time Record
c. Update WIP Account
d. Distribute Paycheck
8. Fixed Asset System uses barcode software to label and track fixed assets. (TRUE)

9. Which transaction is not processed in the Fixed Asset System?

a. Improvement of Equipment
b. Sales of Company Van
c. Purchase of Building
d. Purchase of Raw Material
10. Complicated Transaction is an advantage for reengineered Cash Receipt Procedure.
(FALSE)