1.

The first major business activity in the expenditure cycle is

A. Ordering inventory, supplies, or services.
B. A customer sale
C. Shipping good to customers
D. Receiving goods from vendors.

2. Access controls is the loss or destruction of data. False

3. Vouchers Payable System

a)Monitor inventory records
b)Set up account payable
c)An alternate to AP procedures and uses cash disbursement vouchers
d)Identify liabilities due

4. One of the advantages of a voucher system is it is a less expensive and easier system to
administer than other systems. False

5. Processing of Payroll IT controls

a)Edit controls will minimize risk of corruption
b)Backup procedures will reduce the risk of data loss
c)Check digit control provides control over accessing the wrong employee records by payroll
and personnel clerks
d)Output controls pertain to loss or misdirection of journal vouchers

6. Non-existent employee fraud keeps submitting timecards for terminated employees,

supervisor receives the paychecks. True