The Joppa Corporation's sales department receives all sales order (mail or phone), prepares the sales order form, and forwards a copy to the credit manager for credit approval. On indicating approval, the sales order copy is returned to the sales department, where the shipping order copy is sent to the shipping department for assembling the order. After the order is prepared for shipping, a prenumbered bill of lading is prepared for the shipment.

On shipment of the order, the shipping order copy is returned with a copy of the bill of lading to the sales department, where it is matched with the copy in the open sales order file. All the documents are forwarded to the accounting department.

From the information supplied by the sales department, the prenumbered sales invoices are prepared in the accounting department. Two copies are mailed to the customer and the invoice information is entered in detail in the sales journal. Invoice amounts are posted to the customers' accounts receivable cards at the same time they are entered in the sales journal. Totals from the sales journal are posted to the general ledgcr at month end.

Required:

a. List the procedures you would perform to test the recorded sales.

b. Since this company maintains a file of unfilled sales orders in the sales department, list the recommendations you would give to the client for review of the file and pursuit of old unfilled sales orders.

c. Comment on the internal control system.