Determine whether the provided procedure is appropriate for testing the corresponding control. Procedures Controls Yes/No Prior to

Determine whether the provided procedure is appropriate for testing the corresponding control.

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Procedures Controls Yes/No Prior to the sales staff processing an order, the customer's credit must be reviewed by a supervisor, who completes and signs a Select a sample of sales orders and review payment supporting documents (i.e., bank statement) to determine if the customers ended up paying for the order. "Customer Credit Review" form. At the end of each month, the accounts receivable (A/R) supervisor prepares the aged A/R list. The list is reviewed by the A/R manager, who must sign off on it. Enquire of the A/R supervisor how the aged A/R list is used to calculate the allowance for doubtful accounts. At the end of each day, warehouse staff Request warehouse staff to log into the financial system and attempt to cancel an submit all unfulfilled customer orders to their unfulfilled customer order. supervisor. Only the supervisor is authorized to cancel unfulfilled customer orders in the company's financial system. Controls Procedures Yes/No Employees responsible for shipping are separate from the employees responsible for the shipping department and review whether accepting and processing the sales orders. Obtain HR files of employees who work in they ever worked in the sales orders depart- ment. Review whether employees working in the sales order department ever worked in the shipping department. For a sample of orders that were shipped, obtain delivery notes and check if they were stamped. The quantities on the order delivery note are checked by the warehouse manager against the actual quantities prior to shipment. The manager stamps “Good To Go" on the delivery note for each checked order. All blank cheques are stored and locked in a safe. Only the CF0 and the Finance Manager ger that they always keep the safe locked Confirm with the CFO and the Finance Man- know the code to the safe. and that the code to the safe contains at least six numbers.