Deck 9: Procurement and Human Resources Business Processes

Question 1

ERP can copy relevant information from an existing document to a new one,reducing errors and expediting the business process.

Answer 1

True

Question 2

ERP maintains lists of approved and disapproved sources of supply.

Answer 2

True

Question 3

A synonym for the word "purchasing" is "procurement."

Answer 3

True

Question 4

In ERP,every module can access every master record.

Question 5

An outline agreement contains line items.

Question 6

Buyer-vendor relationships are more a matter of procedure than of policy.

Question 7

The eight documents in the SAP ERP Materials Management module may be processed "on-line."

Question 8

When using a built-up voucher system,the account "Vouchers Payable" is used in addition to "Accounts Payable."

Question 9

A purchase order is an internal document created to request the procurement of something so that it is available at a certain point in time.

Question 10

Goods movement can be either an internal or external event.

Question 11

Numeric document type codes are assigned to each new procurement document created in the SAP ERP system.

Question 12

The imprest fund concept is primarily restricted to petty cash control.

Question 13

A voucher payable system encompasses all expenditures,including trade accounts,payroll,and capital expenditures.

Question 14

Approval of a purchase requisition usually means that the request is within cost limits.

Question 15

All eight documents in the SAP ERP Materials Management module are used each time an item is purchased.

Question 16

Well-designed receiving procedures should call for an independent count of materials delivered and for the preparation of the receiving report.

Question 17

It is common for companies to configure their systems to automatically issue purchase orders for purchase requisitions meeting certain criteria.

Question 18

Vouchers themselves can take several forms,and the form of the voucher itself is not significant.

Question 19

In the procurement business process it is not necessary to separate receiving from stores.

Question 20

Invoice verification is responsible for the payment of invoices in ERP.

Question 21

For the procurement business process,assessed risk must be clearly documented and controls selected for testing and evaluation.

Question 22

Once a purchase requisition is completed,it is electronically forwarded to a(n)________ for approval.

Question 23

Unemployment compensation laws are the same in all states,and all states participate in the federal-state unemployment insurance program.

Question 24

Payroll processing is one of the simplest procedures within a large organization.

Question 25

Risk assessment for the payroll business process is required for compliance with Sarbanes-Oxley.

Question 26

The individual who distributes paychecks should be independent of personnel,timekeeping,and the payroll department.

Question 27

The travel expense component of the ERP HR-PA does not support HR recruitment efforts.

Question 28

For the procurement business process,assessed risk is optional under Sarbanes-Oxley as long as a company's internal control system has been approved by external auditors.

Question 29

Because the procurement business process generates revenue amounts that are considered to be significant accounts,disclosures,and assertions on a company's income statement,risk assessment of the procurement business process is necessary for compliance with Sarbanes-Oxley.

Question 30

The ________ ________ purchase order is issued to initiate a movement of goods between plants in a company.

Question 31

An employer is responsible for the full amount of federal payroll taxes even when he or she fails to withhold the appropriate contributions from employees.

Question 32

Within the procurement business process,fundamental controls are based on a separation of function.

Question 33

ERP Master Material records contain so much data that they are organized as ________.

Question 34

The payroll business process is a subset of procurement and therefore,falls outside the control of Sarbanes-Oxley.

Question 35

The ERP system's "create" function adds a new blank infotype with a default validity date from "current date" to "end of time."

Question 36

One of the functions of the personnel department is the timekeeping function.

Question 37

An "infotype" is a SAP term that denotes a collection of data fields that is grouped together for display.

Question 38

In a negative timekeeping system only exceptions are recorded.

Question 39

In the ERP system a personnel event is a single HR infotype.

Question 40

________ documents are used in the selection of a vendor.

Question 41

Management and auditors must be concerned with evaluating the existence and functioning of controls as they are necessary to protect against the risk of

A) material misstatements.
B) fraud.
C) management misrepresentations.
D) human errors.

Question 42

The SAP ERP HR object code for the object Job is ________.

Question 43

Risk ________ for payroll,procurement,and customer order management business processes is required for compliance with Sarbanes-Oxley.

Question 44

SAP ERP contains the ________ and the ________ HR modules.

Question 45

The rate of pay for an employee cannot be changed unless authorized by the ________ department.

Question 46

The basic information about what the U.S.government requires with respect to payroll is outlined in the Internal Revenue Service's publication called ________ ________.

Question 47

In most states,unemployment compensation laws provide for taxes only on ________.

Question 48

For compliance with SOX,assessed risk for business processes must be clearly documented and ________ selected for testing and evaluation.

Question 49

The final step in the procurement process should be

A) preparation of the purchase order.
B) vendor payment.
C) receipt of the goods.
D) invoice verification.

Question 50

For compliance with SOX,assessed risk for business processes must be clearly

A) tested and reported to FASB.
B) documented on form Circular E and submitted to the SEC.
C) tested and checked for material irregularities.
D) documented and controls selected for testing and evaluation.

Question 51

The most often used feature in the SAP ERP HR modules is the ________ ________ feature.

Question 52

Risk ________ for payroll,procurement,and customer order management business processes is required for compliance with Sarbanes-Oxley

A) control
B) compliance
C) assessment
D) assertions

Question 53

In the ERP system there are ________ data structures which provide the basis for the storage and manipulation of data.

Question 54

A voucher system is essentially a(n)________ technique.

Question 55

Purchasing policies may require ________ ________,which is usually implemented through use of request-for-quotation documents.

Question 56

Management and auditors must be concerned with evaluating the existence and functioning of controls as they are necessary to protect against the risk of ________ misstatements.

Question 57

Master records used only by purchasing in the ERP system are ________ ________ records.

Question 58

To make each infotype in the ERP system unique and to prevent overwriting when updating infotypes,________ data is added to each infotype.

Question 59

In the materials planning system,purchase requisitions can

A) only be prepared electronically.
B) only be prepared manually.
C) be prepared either manually or electronically.
D) Purchase requisitions are not part of the materials planning system.

Question 60

A procurement document that is not available in ERP is the

A) quotation.
B) contract.
C) scheduling agreement.
D) invoice.

Question 61

The specific component of ERP which allows a user to check goods movement and manage inventory stocks is the

A) materials management module.
B) inventory management module.
C) vendor master record.
D) material master record.

Question 62

A purchase order prepared under an existing contract or scheduling agreement is called a

A) consignment purchase order.
B) stock transport purchase order.
C) standard purchase order.
D) release order.

Question 63

The type of purchase order a vendor receives when the vendor must receive and assemble parts into an end product is known as a

A) third-party purchase order.
B) standard purchase order.
C) stock transport purchase order.
D) subcontract purchase order.

Question 64

A document which identifies a vendor and confirms the quantity and price of goods identified in it is called a(n)

A) purchase requisition.
B) outline agreement.
C) purchase order.
D) scheduling agreement.

Question 65

Which of the following accesses the purchase order database during the processing of a purchase order?

A) General ledger and accounts payable
B) Accounts payable, stores, and the receiving department
C) Receiving department, stores, and the general ledger
D) Accounts payable, stores and the general ledger

Question 66

The department or function that is responsible for selecting a vendor to order materials from is

A) purchasing.
B) individual departments requesting the material.
C) requisitioning (stores).
D) sales.

Question 67

A code is not used in ERP master records to identify a(n)

A) plant.
B) accounting unit.
C) specific invoice.
D) purchasing organization.

Question 68

How does ERP's materials management module assist in vendor selection?

A) It links the quotation documents with the requisition.
B) It downloads product information from the vendor's system.
C) It provides a 100-point scoring system to evaluate vendors.
D) It sends rejection letters to vendors whose bids are not accepted.

Question 69

Which of the following reviews and approves the purchase order prior to its further processing?

A) Stores
B) Receiving
C) Internal audit
D) The requesting department

Question 70

The ERP master records that has a hierarchical structure is the

A) material master record.
B) vendor master record.
C) object master record.
D) purchasing information master record.

Question 71

Vendor payment is typically made

A) when an authorized order is placed.
B) once an invoice is posted.
C) when a goods receipt document is prepared.
D) when a purchase requisition has been approved.

Question 72

The Materials Management module of ERP maintains vendor master data.Users in different departments can update these records as necessary.There are several categories of information maintained in vendor master records.Which category of data below is not maintained in the vendor master records?

A) General data such as name, address, and telephone
B) Purchasing data such as quotations, invoice verification, or inventory control
C) Object data such as an organization accounting unit
D) Company code (accounting data) defines agreed payment terms and sub-ledger reconciliation account number

Question 73

Which of the following normally receives a copy of the purchase requisition?

A) Vendor
B) Stores
C) Purchasing
D) Receiving department

Question 74

In ERP,the invoice verification component ensures that

A) cost requirements have been met.
B) quantity requirements have been met.
C) shipping deadlines have been met.
D) Answers A and B are correct.

Question 75

Goods receipt documents can be prepared in several ways.Which way below would not be used when preparing a goods receipt document?

A) By the Inventory Management system
B) By allowing accounts payable to prepare the document
C) By reference to the purchase order
D) Posting the goods receipt document into quality inspection

Question 76

In ERP,master records are created that reflect the organization structure and business processes of the company.Company,plant,and storage locations are known in ERP as

A) objects.
B) organizations.
C) targets.
D) entities.

Question 77

In the SAP ERP system,an outline agreement with a vendor is basically a

A) request for a quotation.
B) contract.
C) purchase order.
D) purchase requisition.

Question 78

An outline agreement detailing the total quantity of material to be ordered over a period of time is a

A) quantity contract.
B) value contract.
C) scheduling agreement.
D) subcontract.

Question 79

The ERP system compares which of the following documents in its invoice verification procedure?

A) Purchase order and goods receipt document
B) Goods receipt document, invoice, and requisition
C) Goods receipt document, invoice, purchase order, and requisition
D) Goods receipt document, invoice, and purchase order

Question 80

ERP can check to see whether a contract exists with a vendor to fill the requirements of a purchase requisition.If no vendor is available,ERP will

A) prepare a request for quotation.
B) prepare a quotation.
C) select an appropriate vendor.
D) issue a warning diagnostic to the user about the situation.