INTERNAL CONTROLS AND INVENTORY ERRORS. Internal control systems enable businesses and their auditors to discover and prevent
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INTERNAL CONTROLS AND INVENTORY ERRORS. Internal control systems enable businesses and their auditors to discover and prevent inventory errors and errors in revenue recognition. Reread the analysis section concerning bill-and-hold transactions presented in the chapter. Describe internal controls that might have enabled Henderson’s auditor to identify the suspicious sale. How could internal controls prevent bogus sales from being recorded? D-2
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