Question 1

Because the evaluated receipts settlement process relies heavily on an IT system that can quickly access online purchase-order files, a system slowdown could halt all receiving activity.

Accepted Answer

The statement accurately describes how the evaluation receipts settlement process works and the potential consequence of a system slowdown.

Question 2

Corporate governance policies and procedures must be in place to assure that funds are expended only to the benefit the organization and its owners.

Accepted Answer

Corporate governance policies and procedures are put in place to ensure that funds are not misused or expended in a way that does not benefit the organization or its owners.

Question 3

Computer logs should be maintained in order to have a complete record of who used the system and the histories of that use.This computer log would allow monitoring and identification of unauthorized accesses or uses.

Accepted Answer

Computer logs provide a record of system use, which is vital for monitoring and identifying unauthorized access or use.

Question 4

When a company implements an evaluated receipt settlement results in the increase in the strength of the internal controls.

Accepted Answer

The answer of When a company implements an evaluated receipt...

Question 5

It is likely that expenditure fraud and ethics violations could be eliminated by a strong, ethical "tone at the top" along with encouragement of ethical behavior by all employees, and strong internal controls.

Accepted Answer

While a strong ethical tone at the top, encouragement of ethical behavior, and strong internal controls can significantly reduce the likelihood of expenditure fraud and ethics violations, it is unlikely that they can be completely eliminated due to human nature and potential lapses in oversight.

Question 6

It is necessary that managers remember that they are stewards of funds expended by a business - that the funds are not owned by the managers.

Accepted Answer

Managers are responsible for managing and allocating the funds of a business, but ultimately these funds belong to the company and its stakeholders, not to the managers individually. It is important for managers to act ethically and responsibly in their use of resources to ensure the long-term success and sustainability of the business.

Question 7

E-business and EDI have much different advantages and risks to the vendor than what exists for the customer.

Accepted Answer

The answer of E-business and EDI have much different advantages...

Question 8

Redundancy is needed for servers, data, and networks.

Accepted Answer

Redundancy ensures that there are backup systems or duplicates available in case of failures or errors. This is important for ensuring continuity and reliability in servers, data storage, and networks.

Quiz 9: Expenditures Processes and Controls - Purchases