TRUE OR FALSE

1. Rotation of purchasing staff as to the type of goods or services that they are responsible for is a good control measure to minimize fraud.
2. Adoption of a firewall and message encryption are some measures to avoid risk from hackers, viruses and transaction fraud
3. Supervision is critically important when goods are being received
4. Customers initiate the collection process by sending their check payment to their supplier through their employees.
5. The credit checking process is a control measure that is categorized as authorization control as well as a segragation of duties.
6. A purchase invoice provides evidence that goods are in the possession of the buyer and has ownership over them
7. When an integrated system is in place, personnel responsibilities are refocused on financial analysis and exception based problem solving rather than on day-to-day clerical tasks.
8. A time lag always exists between the physical and financial subsystems of the revenue cycle
9. The manner of making or authorizing a purchase depends on the type of item being purchased as well as the urgency of the purchase among other things.
10. It is ideal to convert customer orders received into a uniform sales order format especially for voluminous transactions.
11. The AP packet contains the purchase order, the receiving report and the supplier's invoice.
12. The recording of the sales is better if based on an invoice acknowledged by the customer rather than upon the release of an invoice.
13. Production personnel may be designated as sales personnel
14. Deposit of cash collections is a risky activity
15. Scanner technology can replace manual counting and inspection in the receiving process
16. Stamping the word "USED" on documents supporting a check is a control measure to ensure the same documents are not resubmitted for payment
17. When a purchase order is sent to a supplier, a financial obligation is created which as to be recorded by the buyer.
18. An official receipt should be issued for any form of payment received from a customer
19. Selling to uncredit worthy customers can negatively affect an organization's working capital fund requirements
20. Payment of liabilities is initiated by the Treasury Department since they have custody of the voucher packet which had been submitted to them by the accounts payable department
21. When the system is computerized, an accountant can rely on the accuracy of the reports generated in the system
22. A check signatory is not required to review the supporting documents of a check since it can be assumed that these documents had been thoroughly reviewed by the assigned staff employees.
23. Sales orders should always be received by the sales department or a designated sales personnel
24. Assuming prudent credit checking is performed, a new customer may be given credit
25. No significant problems will arise if a sales manager is allowed to approve granting of credit to customers