An internal control questionnaire indicates that an approved receiving report is required to accompany every check request for payment of merchandise. Which of the following procedures provides the greatest assurance that this control is operating effectively? a. Select and examine receiving reports as ascertain that the related canceled checks are dated no earlier than the receiving reports. b. Select and examine receiving reports and ascertain that the related canceled checks are dated no later than the receiving reports. c. Select and examine canceled checks and ascertain that the related receiving reports are dated no earlier than the checks. d. Select and examine canceled checks and ascertain that the related receiving reports are dated no later than the checks.

Question

Carissa Jacobs

Social Studies

28 November, 02:14

An internal control questionnaire indicates that an approved receiving report is required to accompany every check request for payment of merchandise. Which of the following procedures provides the greatest assurance that this control is operating effectively? a. Select and examine receiving reports as ascertain that the related canceled checks are dated no earlier than the receiving reports. b. Select and examine receiving reports and ascertain that the related canceled checks are dated no later than the receiving reports. c. Select and examine canceled checks and ascertain that the related receiving reports are dated no earlier than the checks. d. Select and examine canceled checks and ascertain that the related receiving reports are dated no later than the checks.

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Rivas · Answer 1

d. Select and examine canceled checks and ascertain that the related receiving reports are dated no later than the checks.

Explanation:

The procedures provides the greatest assurance that this control is operating effectively is select and examine canceled checks and ascertain that the related receiving reports are dated no later than the checks because the case states that every check request for payment should have an approved receiving report which means that every check should have a receiving report which date should be before or the same day in which it was canceled.