1. Which of the following is the most effective control procedure to detect vouchers that were prepared for the payment of goods that were not received?
a. Count goods on receipt in the storeroom.
b. Match purchase order, receiving report, and vendor’s invoice for each voucher in the accounts payable department.
c. Compare goods received with goods requisitioned in the receiving department.
d. Verify vouchers for accuracy and approval in the internal audit department.

2. The mailing of disbursement checks and remittance advices should be controlled by the employee who
a. Signed the checks last.
b. Approved the vouchers for payment.
c. Matched the receiving reports, purchase orders, and vendors’ invoices.
d. Verified the mathematical accuracy of the vouchers and remittance advices.

3. To determine whether accounts payable are complete, an auditor performs a test to verify that all merchandise received is recorded. The population of documents for this test consists of all
a. Vendors’ invoices.
b. Purchase orders.
c. Receiving reports.
d. Canceled checks.

4. Which of the following control procedures is not usually performed in the vouchers payable department?
a. Determining the mathematical accuracy of the vendor’s invoice
b. Having an authorized person approve the voucher
c. Controlling the mailing of the check and remittance advice
d. Matching the receiving report with the purchase order

5. For effective internal control purposes, the vouchers payable department should generally
a. Stamp, perforate, or otherwise cancel supporting documentation after payment is mailed.
b. Ascertain that each requisition is approved as to price, quantity, and quality of an authorized employee.
c. Obliterate the quantity ordered on the receiving department copy of the purchase order.
d. Establish the agreement of the vendor’s invoice with the receiving report and purchase order.

6. Which of the following procedures in the cash disbursements cycle should not be performed by the accounts payable department?
a. Comparing the vendor’s invoice with the receiving report
b. Canceling supporting documentation after payment
c. Verifying the mathematical accuracy of the vendor’s invoice
d. Signing the voucher for payment by an authorized person

7. Mailing disbursement checks and remittance advices should be controlled by the employee who
a. Approves the vouchers for payment.
b. Matches the receiving reports, purchase orders, and vendors’ invoices.
c. Maintains possession of the mechanical check- signing device.
d. Signs the checks last.

8. Matching the supplier’s invoice, the purchase order, and the receiving report normally should be the responsibility of the
a. Warehouse receiving function.
b. Purchasing function.
c. General accounting functions.
d. Treasury function.

9. To avoid potential errors and irregularities, a well- designed system of internal accounting control in the accounts payable area should include a separation of which of the following functions?
a. Cash disbursements and vendor invoice verification
b. Vendor invoice verification and merchandise ordering
c. Physical handling of merchandise received and preparation of receiving reports
d. Check signing and cancelation of payment documentation