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12. Correct Answer: A.
To ascertain that merchandise billed by the vendor was received by the

company
Letter A is correct because this practice helps in verifying the accuracy of the transaction and
prevents billing discrepancies such as paying for goods that were not received. Ensuring that
every copy of a vendor's invoice has a receiving report is essential to verify that the
merchandise billed by the vendor was indeed received by the company. Cross-referencing these
documents helps to confirm that the goods ordered (via purchase order) were actually received
(via receiving report) and subsequently billed by the vendor (via vendor's invoice). This process
establishes a critical link between the purchase order, receiving report, and vendor's invoice.
13. Correct Answer: A. Match the purchase order, receiving report and vendor's invoice for
each voucher in accounts payable
Matching the purchase order, receiving report, and vendor's invoice for each voucher in the
accounts payable department is highly effective. It ensures that what was ordered, what was
received, and what was billed are in alignment. Any discrepancies among these documents can
indicate potential issues such as goods being invoiced but not received by the company. This
control procedure acts as a preventive measure against fraudulent billing or errors in the
accounts payable process .
14. Correct Answer: B. Accounting for unused pre-numbered purchase orders and receiving
reports
Accounting for unused pre-numbered purchase orders and receiving reports is typically not
handled within the vouchers payable department. The responsibility for managing and
reconciling such documents usually falls under the purview of inventory control or purchasing
departments. This control ensures that all purchase orders and receiving reports are properly
tracked and accounted for, reducing the risk of errors or misuse in the procurement process.
15. Correct Answer: C. Approving vendor's invoices for payment

Approving vendor's invoices for payment is typically not a function of the treasurer's
department. The responsibility for approving invoices and authorizing payments usually resides
within the accounts payable function. Invoices are reviewed for accuracy, legitimacy, and
authorization before payments are processed, which helps maintain financial integrity and
prevent unauthorized expenditures.
16. Correct Answer: C. Write the check number on the supporting documents
Writing the check number on the supporting documents is a common method to cancel them
effectively. This practice prevents the reuse of supporting documents for another check at a
later time, ensuring that each check is supported by unique and corresponding documentation.
It serves as an important internal control measure to prevent duplicate payments and maintain
the integrity of the cash disbursement process.
17. Correct Answer: D. Treasurer

The treasurer should sign checks for good internal control. The treasurer typically holds a high-
level position responsible for managing a company's finances and overseeing cash
disbursements. Having the treasurer sign checks helps ensure accountability, accuracy, and
proper authorization in the disbursement process.
18. Correct Answer: C. Internal audit function

Operating control of the check-signing machine usually falls under the responsibility of the
internal audit function. The internal audit function ensures that controls related to the check-
signing machine are operating effectively and that the machine is used appropriately to prevent
unauthorized access or misuse. Internal audit plays a crucial role in safeguarding the integrity of
financial processes and detecting any irregularities or deficiencies in internal controls
19. Correct Answer: A. Signed the checks last

The mailing of disbursement checks and remittance advices should be controlled by the
employee who signed the checks last. This control ensures accountability and reduces the risk
of unauthorized access or tampering during the mailing process. It is essential to maintain
proper oversight and security measures to protect the integrity of disbursement transactions
and prevent fraudulent activities.
20. Correct Answer: C. Cancellation of vouchers by treasurer personnel

The cancellation of vouchers by treasurer personnel would discourage the resubmission of
vendor invoices after payment. Once vouchers are cancelled, they cannot be reused for
subsequent payments, thereby preventing duplicate payments and maintaining the integrity of
the accounts payable process. This control measure helps prevent fraud and ensures that
payments are made only for legitimate and authorized transactions.
21. Correct Answer: B. Checks should be sequentially numbered and the numerical sequence
should be accounted for by the person preparing bank reconciliations.
Checks should be sequentially numbered, and the numerical sequence should be accounted for
by the person preparing bank reconciliations Sequential numbering and reconciliation of check
numbers help detect any missing or unauthorized transactions, providing an important
safeguard against financial irregularities. This control ensures that all checks issued are properly
recorded and accounted for, reducing the risk of unauthorized or fraudulent payments.
22. Correct Answer: B. The official signing the check should cancel the supporting documents.
The official signing the check should cancel the supporting documents. Cancelling the
supporting documents ensures that they cannot be reused for another payment, preventing
duplicate payments and maintaining control over cash disbursements. This control measure
helps safeguard against fraudulent activities and ensures the integrity of the accounts payable
process.

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12. Correct Answer: A.

To ascertain that merchandise billed by the vendor was received by the

15. Correct Answer: C. Approving vendor's invoices for payment

17. Correct Answer: D. Treasurer

18. Correct Answer: C. Internal audit function

19. Correct Answer: A. Signed the checks last

20. Correct Answer: C. Cancellation of vouchers by treasurer personnel

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