The sales transactions at Colorado Park, a new audit client, are handled by a software application that is not supported by very detailed documentation. The audit partner requests the team to re-perform some controls to ensure that the software application controls are working as described by Colorado Park’s management. The audit software used by the audit team can access the data on the client’s files, allowing the use of standard audit procedures.

Required

(a) Give examples of controls over sales transactions that should be part of the software application.

(b) How could the audit team test the controls in the client’s sales software application?