SAP C_ARCIG_2102 Q&A - in .pdf

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  • Exam Code: C_ARCIG_2102
  • Exam Name: SAP Certified Application Associate - SAP Ariba Integration with Cloud Integration Gateway
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  • Exam Code: C_ARCIG_2102
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NEW QUESTION: 1
Which of the following internal control procedures most likely addresses the completeness assertion for
inventory?
A. There is a separation of duties between payroll department and inventory accounting personnel.
B. Work in process account is periodically reconciled with subsidiary records.
C. Employees responsible for custody of finished goods do not perform the receiving function.
D. Receiving reports are prenumbered and periodically reconciled.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "C" is correct. The internal control procedure of prenumbering receiving reports and periodically
reconciling them to the inventory records most likely addresses the completeness assertion for inventory,
because it allows the auditor to determine whether all goods received have been recorded as inventory.
Choice "A" is incorrect. Reconciling the work in process account (per the general ledger) with subsidiary
records (direct materials, direct labor, overhead) tests that those records are interfacing properly, but does
not provide any information about the completeness assertion for inventory.
Choice "B" is incorrect. Separation of employees responsible for custody of finished goods from the
receiving function addresses the safeguarding of assets, not the completeness of the inventory records.
Choice "D" is incorrect. The separation of duties between the payroll department and inventory accounting
personnel is related to the valuation (pricing) of inventory, not its completeness.

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