Which of the following best represents a misstatement due to fraudulent financial reporting? 1.Zipups president requires the assistant controller to eliminate only 40% intercompany profit in the ending inventory of subsidiaries in the year-end consolidation. The financial statements reflect this change. 2.Zipups GL accountant adjusts depreciation expense to reflect month-end closing entries. The controller reviews the entry without incident. 3.The accounts payable subsidiary ledger failed to update to the general ledger for a difference of $500,000. 4.The warehouse manager takes home one case of premium zippers every night. The periodic inventory count adjusts the inventory for the shrinkage. Q. Which of the following would most likely be identified as at least a significant deficiency? The board of directors does not review the financial statements before release. The risk assessment process occurs only once yearly. The company failed to place a fire extinguisher in the break room. The cameras in the warehouse were down for three weeks last quarter. Q.The reason that a blind copy of the purchase order is sent to receiving is to force a count of the items delivered. require that the goods delivered are inspected. inform receiving when a shipment is due. inform receiving of the type, quantity, and price of items be delivered. Q.The purpose of the purchase order is to record receipt of goods from vendors. approve payment for goods received. authorize the purchasing department to order goods. order goods from vendors. Q.An appropriately designed data flow diagram for the sales cycle would illustrate that the warehouse employees pick goods only after: The customers credit has been cleared An invoice has been sent to the customer. The bill of lading has been printed. Inventory has been posted as a reduction to the general ledger file. Q. The revenue cycle utilizes all of the following files except Payroll data reference file Shipping report file Sales history file Credit memo file Q.The purpose of the purchase requisition is to Bill for goods delivered Request merchandise be ordered by purchasing Order goods from vendors Record receipt of goods from vendors Q. The purpose of the cost accounting system is to Authorize release of raw materials Direct the movement of work-in-process Produce information for inventory valuation Determine material requirements Q. Which of the following best represents the form of information in the context of senior management in a corporation? Aggregate information utilized for strategic decision making, vision and presenting to external users. Tracking and further compiling of information in order to direct line employees and report results to others within the entity. Processing of information in order to adequately build relationships between data-sets. Detailed and raw data input for the purpose of operating activities. Q. Which department prepares the bill of lading? Sales Credit Shipping Warehouse