The following errors or fraud and other irregularities are included in the accounting records of Joyce Manufactur¬ ing Ltd.:

1. The credit limit for a new customer was entered as $20,000 rather than $2,000 into the customer master file.

2. A material sale was unintentionally recorded for the sec¬ ond time on the last day of the year. The sale had origi¬ nally been recorded two days earlier.

3. Cash paid on accounts receivable was stolen by the mail clerk when the mail was opened.

4. Cash paid on accounts receivable that had been prelisted by a secretary was stolen by the bookkeeper who enters cash receipts and accounts receivable in the accounts receivable system. Fie failed to enter the transactions.

5. A shipment to a customer was not billed because of the loss of the bill of lading.

6. Merchandise was shipped to a customer, but no bill of lading was prepared. Since billings are prepared from bills of lading, the customer was not billed.

7. A sale to a residential customer was unintentionally clas¬ sified as a commercial sale.

Required

a. Identify whether each misstatement is an error or a fraud or other irregularity.

b. For each misstatement, state a control that should have prevented it from occurring on a continuing basis.

c. For each misstatement, state an audit procedure that could uncover it.