🔦 Illuminating the Path: A Hilarious Walk-Through Test in Accounting
Welcome to yet another riveting episode of Accounting Adventures: your one-stop shop for laughter and learning. Today, we’re diving headfirst into the wonky world of walk-through tests. Yes, you heard it right! It’s like a joyride, but with more debits and credits.
What is a Walk-Through Test❓
Imagine you’re Indiana Jones, but instead of ancient artifacts, you’re chasing down invoices and receipts. A walk-through test involves picking a few transactions from the company’s records and tracking them through every twist and turn in the accounting system.
💭 A walk-through test in auditing is akin to finding your keys, navigating through your purse or apartment, but for numbers in a ledger - and with far higher stakes (and less couch cushion diving).
The Journey of a Purchase 🌟🚚📦🧾💵
Let’s break down the adventure with a purchases system as an example:
- Material Requisition 🔒: Our journey begins with the material requisition form. This is when someone decides, “Hey, we need more coffee beans!”
- Purchase Order 📑: We send out an official document, akin to shouting
### What is the first stage of a walk-through test in the purchases system?
- [ ] Invoice Checking
- [x] Material Requisition
- [ ] Payment Authorization
- [ ] Goods Received Note
> **Explanation:** The start of any journey begins with recognizing the need. In this case, it’s knowing what materials or goods are needed before purchasing them.
### What document is akin to a shopping list in the process?
- [ ] Goods Received Note
- [x] Purchase Order
- [ ] Payment Authorization
- [ ] Inventory List
> **Explanation:** The purchase order serves as the official request for the needed item, much like a shopping list.
### Which is the ultimate goal of a walk-through test?
- [ ] To pay suppliers
- [ ] To sleep at work
- [x] To test internal controls
- [ ] To stockpile coffee beans
> **Explanation:** Walk-through tests are conducted to ensure that internal controls within the accounting system are functioning as intended.
### Where in the process do you match the physical goods to the records?
- [ ] Payment Authorization
- [ ] Material Requisition
- [x] Goods Received Note
- [ ] Invoice Checking
> **Explanation:** The Goods Received Note is where the physical goods received are documented and matched to records.
### Which phase involves verifying invoice accuracy?
- [ ] Settlement of Supplier’s Invoice
- [ ] Payment Authorization
- [ ] Purchase Order
- [x] Invoice Checking
> **Explanation:** Invoice Checking is the phase where the accuracy of the invoice is verified to ensure everything matches up.
### Which of these is a final step in the process?
- [ ] Material Requisition
- [x] Payment Authorization
- [ ] Goods Received Note
- [ ] Purchase Order
> **Explanation:** Payment Authorization is one of the final steps, where the payment is officially authorized.
### What phrase summarizes the purpose of a walk-through test?
- [ ] Gorgon’s Foil
- [ ] Harry’s Escape
- [x] Internal Control
- [ ] Yo-Yo Ma
> **Explanation:** Walk-through tests ensure that internal controls are in place and working correctly.
### Why would an auditor use a walk-through test?
- [ ] To impress their boss
- [ ] To lose weight
- [x] To check the reliability of the system
- [ ] To look busy
> **Explanation:** Auditors use walk-through tests to ensure that the accounting system is reliable and functioning as expected.
