Identify whether the described control is preventative or detective. Control Preventative or Detective? Management reviews sales and
Question:
Identify whether the described control is preventative or detective.
Transcribed Image Text:
Control Preventative or Detective? Management reviews sales and cost of sales analytical reports for reasonableness. Invoices can be posted only to valid customer accounts. Shipping records and sales invoices cannot be produced if the customer number is invalid. Credit is approved before shipment takes place. Monthly statements are sent to customers; complaints receive independent follow-up (also satisfies accuracy). Approval is required to commence selling goods to a new customer. Management reviews exception reports of unusual customer data.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (15 reviews)
Control P Preventative or D Detective Management review...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Auditing The Art and Science of Assurance Engagements
ISBN: 978-0134613116
14th Canadian edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones
Question Posted:
Students also viewed these Business questions
-
Identify whether the transactions described should be recorded by Cameron Companies during December 2010 (fill in the blank with a D) or January 2011 (fill in the blank with a J). Purchases of...
-
Identify whether the following internal control procedures relate to cash receipts or cash disbursements. Internal Control Procedure Cash Receipt? Cash Disbursement? All payments must be made by...
-
Identify whether the transactions described should be recorded by Cameron Companies during December 2012 (fill in the blank with a D) or January 2013 (fill in the blank with a J). Purchases of...
-
10 You are looking at an investment that will pay $1200 in 5 years if you invest $1000 today. What is the implied rate of interest? A. What Formula would you use to find the answer? Show the formula...
-
Reticulocyte (immature red blood cell) lysates can be made devoid of mRNA by ribonuclease treatment followed by inactivation and removal of the ribonuclease. These lysates are now capable of...
-
Find some individuals (other students, friends, or relatives) who were either raised in and/or are familiar with a foreign country. Interview them and ask their opinions about how they perceive that...
-
Sprouse Company is considering an investment in equipment that will replace direct labor. The equipment has a cost of \($64,000,\) with a \($6,000\) residual value and an 8-year life. The equipment...
-
A Department of Housing and Urban Development (HUD) program is aimed at conserving and rehabilitating blighted but salvageable urban areas. One element of the program provides that HUD will make...
-
The balance sheet for Quinn Corporation is shown here in market value terms. There are 5 , 0 0 0 shares of stock outstanding. Market Value Balance Sheet Cash $ 4 5 , 1 0 0 Equity $ 4 9 5 , 1 0 0...
-
A gas at upstream condition (T1 ,P1) is throttled in a downstream pressure of 1.2 bar. Use the Redlich / Kwong equation to estimate the downstream temperature and S of the gas for one of the...
-
For each situation, identify the management assertion(s) most likely affected. Assertions: A. Cutoff B. Accuracy C. Completeness D. Existence E. Valuation F. Occurrence Assertion(s) (A,B,C,D,E,F)...
-
In addition to evaluating the frequency of deviations in tests of controls, an auditor should also consider certain qualitative aspects of the deviations. The auditor most likely would give...
-
A rubber object is in contact with nitrogen (N 2 ) at 298 K and 250 kPa. The solubility of nitrogen gas in rubber is 0.00156 kmol/m 3 bar. The mass density of nitrogen at the interface is (a) 0.049...
-
If you earned a 2.1% return on your savings with a 20% tax rate, what is your after-tax rate of return?
-
Bob (age 43) and Melissa (age 43) Grant are married and live in Lexington, Kentucky. The Grants have two children: Jared, age 15, and Alese, age 12. The Grants would like to file a joint tax return...
-
Relative Purchasing Power Parity shows the relationship between exchange rates and inflation. The formula is E(St) = S0[1+(hFC-hCDN)]t where h refers to expected inflation in both the foreign country...
-
Describe the conflict management strategies introduced in Exhibit 14.4.? Explain how assertiveness and cooperation contribute to the strategies.? Based on the conflict management strategies, describe...
-
Revenue 850,000 Maintenance and Repair for medical building 40,800 Indirect Labour 32,300 Direct Materials purchase-artificial limbs 166,600 Medical centre utilities 28,900 Office building general...
-
Write a paper on "Job Search as a System Security Engineer". It's an Introduction and methodology, action research paper
-
a) Calculate the goodwill that was paid by Major Ltd on the acquisition of Minor Ltd. [10 marks] b) Prepare the consolidated statement of financial position for Major Ltd at 31 July 20X8. [30 marks]...
-
Donna, a PA, is approached by the owner of one of her clients, for whom she normally compiles monthly and annual financial statements, to perform an audit of the company's inventories. The client,...
-
Aqua Inc. was a privately owned company that operated a marina business from two lakefront properties in northern Ontario. The company was started by two brothers. The company provided boat docking,...
-
Barbara Whitley had great expectations about her future as she sat at her graduation ceremony in May 2015. She was about to receive her Master of Accountancy degree, and the following week she would...
-
Assume that today isMay 4 , 2020. Natasha Kingery is 30 years old and has a Bachelor of Science degree in computer science. She is currently employed as a Tier 2 field service representative for a...
-
Interest expense is: Question 16 options: a) The effective interest rate times the amount of the debt outstanding during the interest period. b) The stated interest rate times the amount of the debt...
-
Select the audit procedure from the list provided that gives the most appropriate audit evidence for the account of Accrued Payroll and the assertion of Cut-off. Question 18 options: 1) Perform...
Study smarter with the SolutionInn App