IIA Exam CPEA Topic 1 Question 60 Discussion

Actual exam question for IIA's CPEA exam

Question #: 60
Topic #: 1

[All CPEA Questions]

Which one of the following combinations of duties is most likely to be considered an acceptable practice from an internal control viewpoint if the combination of duties described are to be performed by the same employee?

Amaintaining the accounts receivable ledger and receiving all cash payments submitted against it

Breceiving all cash payments and depositing the cash payments in the bank

Cmaintaining the perpetual inventory records and receiving all supply deliveries

Dmaintaining the perpetual inventory records and maintaining the accounts receivable ledger

Show Suggested Answer

Suggested Answer: A, B, C

by Edna at Jul 10, 2023, 02:57 AM

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Elise

2 months ago

Option E: Hire a court jester to manage the accounts. That way, at least the numbers will be entertaining!

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Alayna

8 days ago

That sounds like a good way to ensure accuracy in the records.

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Galen

9 days ago

D) maintaining the perpetual inventory records and maintaining the accounts receivable ledger

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Rosina

10 days ago

I think that could lead to potential issues with misappropriation of funds.

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Iluminada

12 days ago

B) receiving all cash payments and depositing the cash payments in the bank

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Glenn

27 days ago

That seems like a good idea to prevent fraud.

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Alayna

1 months ago

A) maintaining the accounts receivable ledger and receiving all cash payments submitted against it

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Jerry

2 months ago

Hmm, Option D looks the most promising. Keeping the accounts receivable and inventory separate is a good way to prevent any funny business.

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Rickie

2 months ago

Oof, Option C is a recipe for disaster. Maintaining inventory records and receiving deliveries? That's a recipe for some creative accounting!

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Gerald

24 days ago

Option B is also a good choice, it ensures proper handling of cash.

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Marquetta

1 months ago

I think Option A is the best choice, it separates the duties effectively.

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Kate

1 months ago

I agree, Option C definitely has a high risk of fraud.

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Vanna

3 months ago

Option B seems alright to me. Receiving cash and depositing it doesn't create a conflict of interest, right?

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Phyliss

2 months ago

User 3: Yeah, it helps prevent any potential fraud or errors.

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Lynsey

2 months ago

User 2: I agree, receiving cash and depositing it separately is a good practice.

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Noel

2 months ago

User 1: Option B seems like the best choice.

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Rossana

3 months ago

I see your point, Madalyn. Option D does make sense in terms of efficiency and accuracy in record-keeping.

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Madalyn

3 months ago

I disagree, I believe option D is the best choice as it combines related duties of maintaining inventory records and accounts receivable ledger.

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Casandra

3 months ago

I think option A is acceptable because it separates the duties of maintaining accounts receivable and receiving cash payments.

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Steffanie

3 months ago

Option A is definitely a no-go. Separating the duties of maintaining the accounts receivable ledger and receiving cash payments is a basic internal control principle.

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