Question 1

The following is a list of 10 control plans.
  Required:
Listed below are ten system failures that indicate weaknesses in control. On the answer line to the left of each description, insert the capital letter (from the list above) of the best control plan to address the system deficiency described. A letter should be used only once.

Accepted Answer

The answer of The following is a list of 10...

Question 2

The control plan ______________________________ matches records of cash disbursements to bank records to ensure that all disbursements actually made by the bank were authorized and accurate.

Accepted Answer

The answer of The control plan ______________________________ matches records of...

Question 3

Below is a narrative for the "Make payment" portion (bubble 2.0) of the accounts payable/cash disbursements process described in Chapter 13.
Narrative Description
The payment process begins with the periodic preparation of a list of payments that might be made at this time (bubble 2.1). The selection of items for this list is based on payment due dates and terms that may indicate a discount can be taken for a payment at this time. The proposed list is reviewed and amended (bubble 2.2) to add additional invoices that are not due for payment yet but that can be consolidated with other payments being made to a vendor. Proposed payments may be removed from the list if there are insufficient funds or if payments to a vendor are on hold.
Bubble 2.3 depicts the process of preparing the disbursement, which is equal to the amount of the invoice less any discount taken. The payment is recorded by:
 *Marlang the invaice as paid an the accaunts payable master data.
*Maling an enty in the cash disbursements event data 5 tore.
*Sending payment date to the general ledger where an entry is made to reflect the payment. Required:
From the DFD (TB Figure 13.5) and the narrative description above, explode bubble 2.0 into a lower-level diagram showing the details of that process.

Accepted Answer

The answer of Below is a narrative for the "Make...

Question 4

The flowchart below is the accounts payable/cash disbursements process presented in Chapter 13, but with certain items omitted. In the flowchart, each omission is indicated by a capital letter (A through I). Jumbled lists of the omitted items are as follows:
 1. Compare incoming invaices to $P O$ and recening report data and record AP and GL data
2. Display of proposed payments
3. Enterprise database
4. Exception rautine not shown
5. Paynent totals
6. Prepare payment order and RA, update AP and GL data far payment display payment tatals
7. Select payments, calculate batch totals
8. Translate fram EDI and record incaring invaices
9. VAN Required:
Complete the flowchart TB Figure 13.11 by placing one of the numbers, 1 through 9 from the above lists, to match the letters showing the missing items.

Accepted Answer

The answer of The flowchart below is the accounts payable/cash...

Question 5

______________________________ is an exception that usually occurs at the point of inspecting and counting the goods or when validating vendor invoices.

Accepted Answer

The answer of ______________________________ is an exception that usually occurs...

Question 6

Below is a narrative for the "Make payment" portion (bubble 2.0) of the accounts payable/cash disbursements process described in Chapter 13.
Narrative Description
The payment process begins with the periodic preparation of a list of payments that might be made at this time (bubble 2.1). The selection of items for this list is based on payment due dates and terms that may indicate a discount can be taken for a payment at this time. The proposed list is reviewed and amended (bubble 2.2) to add additional invoices that are not due for payment yet but that can be consolidated with other payments being made to a vendor. Proposed payments may be removed from the list if there are insufficient funds or if payments to a vendor are on hold.
Bubble 2.3 depicts the process of preparing the disbursement, which is equal to the amount of the invoice less any discount taken. The payment is recorded by:
 *Marlang the invaice as paid an the accaunts payable master data.
*Maling an enty in the cash disbursements event data 5 tore.
*Sending payment date to the general ledger where an entry is made to reflect the payment. Required:
Using the DFD in TB Figure 13.7 and the narrative description above, identify the words that belong in items 1 to 9 of Diagram 2.0 (TB Figure 13.8).

Accepted Answer

The answer of Below is a narrative for the "Make...

Question 7

To ensure that only authorized payments are made, there should be ______________________________ whereby the accounts payable records on which the payment is based should created by an entity other than the entity that executes the payment.

Accepted Answer

The answer of To ensure that only authorized payments are...

Question 8

______________________________ systems are B2B systems that combine e-invoicing and e-payment processes to send invoices to electronic invoices to customers and to receive electronic payments.

Accepted Answer

The answer of ______________________________ systems are B2B systems that combine...

Question 9

The AP process that uses vendor invoices for inputs updates the ______________________________ master data.

Accepted Answer

The answer of The AP process that uses vendor invoices...

Question 10

The control plan ______________________________ requires that the authority for recording a vendor invoice come from the purchase order and receiving report created by entities other than the entity that records the vendor invoice.

Accepted Answer

The answer of The control plan ______________________________ requires that the...

Question 11

To ensure that a vendor invoice is recorded accurately and that items on the invoice were ordered and received requires that we ______________________________.

Accepted Answer

The answer of To ensure that a vendor invoice is...

Question 12

TB Figure 13.9 is the control matrix for the accounts payable/cash disbursements process presented in Chapter 13, but with certain items omitted. In the matrix, each omission is indicated by a box. Jumbled lists of the omitted items are as follows:
   Required:
Complete the matrix in parts 1 and 2 of TB Figure 13.9 below by placing one of the numbers, 1 through 14 from the above lists, in each empty box.

Accepted Answer

The answer of TB Figure 13.9 is the control matrix...

Question 13

The figure below shows a portion of the horizontal perspective of an accounts payable/cash disbursements (AP/CD) process. The following functional titles (for the AP/CD process organizational structures and the entities with which the AP/CD process interacts) and information flows, depicted as documents, generated or captured by the AP/CD process, have been omitted.
   Required:
Complete TB Figure 13.1 by inserting the letter corresponding to the:
 (a) functional titles inta the baxes
(b) information flow descriptions in the document symbols

Accepted Answer

The answer of The figure below shows a portion of...

Question 14

Input validity for ______________________________ is ensured by making sure that the invoice is for goods that were actually ordered and actually received.

Accepted Answer

The answer of Input validity for ______________________________ is ensured by...

Question 15

Fraud abuses in the AP/CD process usually entail creating phony ______________________________ or submitting fictitious _________.

Accepted Answer

The answer of Fraud abuses in the AP/CD process usually...

Question 16

Below is a narrative of the "Establish payable" portion (bubble 1.0) of the AP/CD process described in Chapter 13.
Narrative Description
The first step in establishing the payable involves validating the vendor invoice. This process is triggered by receipt of the vendor invoice. Process 1.1 comprises a number of steps. First, the vendor invoice is matched against vendor master data to determine that the invoice is from an authorized vendor. Next, the vendor invoice is compared against the PO data (see the flow PO accounts payable notification) to make sure that there is a PO (i.e., there is an authorized purchase) and that the invoiced items, quantities, and prices conform to the PO. Then, the invoice is matched against the receiving report data to determine that the items and quantities have been received. Finally, the invoice is further validated by checking for accuracy of terms, computed discounts, extensions, and total amount due. Note that the vendor master data is updated at this point to reflect purchase history data.
If the data items do not agree, the invoice is rejected, and follow-up procedures are initiated (see the reject stub emanating from bubble 1.1). If the data items agree, the invoice is approved, and the validated invoice is sent on to the next step to be used to record the payable. Bubble 1.2 depicts the process of recording the payable in the purchase events data and accounts payable master data. A payable is recognized and recorded by:
 *Creating a record in the purchase events data stare.
*Creating a record in the accounts payable master data to reflect an apen invaice $\rightarrow$ payment due to a vendar.
*Updating the inventary master data for the cost of the items received.
*Natifying the general ledger of the amount of the payable that was recarded (5ee the data flow "GL payable update"). Required:
From the DFD (TB Figure 13.3) and the narrative description above, explode bubble 1.0 into a lower-level diagram showing the details of that process.

Accepted Answer

The answer of Below is a narrative of the "Establish...

Question 17

The control plan ______________________________ includes an aging of open vouchers / accounts payable records that is produced and reviewed on a regular basis in order to ensure that there is an adequate cash reserve to make required payments.

Accepted Answer

The answer of The control plan ______________________________ includes an aging...

Question 18

______________________________ is a process by which an organization pays for a purchase on the basis of the receipt of the goods.

Accepted Answer

The answer of ______________________________ is a process by which an...

Quiz 13: The Accounts Payablecash Disbursements Apcd Process