For each of the questions, state the transactionrelated audit objectives being fulfilled if the control is in effect.

Question

Transactionrelated audit objectives

Are customer orders evaluated for credit approval by someone independent of sales?

Is the bill of lading information forwarded in a timely fashion to accounting to ensure recording in the sales journal?

Is the numerical sequence of bills of ladings accounted for to identify duplicates or missing documents?

Is the method of revenue recognition accurately and clearly described in the footnotes to the financial statements?

Are online sales automatically recorded in the sales system?

Are unit prices obtained from a preapproved and restricted file of unit prices?

Are sales invoice amounts independently verified for correctness?

Are entries in the sales journal restricted to those that are supported by a valid bill of lading?

Are entries in the sales journal timely recorded in the accounts receivable database?

Are individuals responsible for handling cash collections independent of accounting and shipping functions?

Answer rating: 100% (QA)

Here are the transactionrelated audit objectives fulfilled by each control as describe... View the full answer