11-25 (OBJECTIVE 11-3) The following are misstatements that have occurred in Fresh Foods Grocery Store, a retail and wholesale grocery company 1. On the last day of the year, a truckload of beef was set aside for shipment but was not shipped. Because it was still on hand, the inventory was counted. The shipping docu- ment was dated the last day of the year, so it was also included as a current-year sale. because the wrong price was entered into the computer master file of prices. counts payable software application does not require the input of a valid receiving 2. The incorrect price was used on sales invoices for billing shipments to customers 3. A vendor invoice was paid even though no merchandise was ever received. The ac- report number before payment can be made When a shipment of meat was received, the receiving department filled out a receiv- actually received. At that time, two sides of beef were put in an employee's pickup 4. Employees in the receiving department took sides of beef for their and forwarded it to the a g department for the amount of goods truck rather than in the storage freezer 5. An accounts payable clerk processed payments to himself by adding a fictitious vendor address to the approved vendor master file. 6. During the phys ical count of inventory of the retail grocery, one counter wrote down the wrong description of several products and misc the quantity 7sd an entire catoa know the cost of lamb had increased in the past week Part 2 THE AUDIT PROCESS 362 8. A vendor's invoice was paid twice for the same shipment. The second payment arose because the vendor sent a duplicate copy of the original 2 weeks after the payment was due. a. For each misstatement, identify one or more types of controls that were absent. b. For each misstatement, identify the transactio Required have not been met. c. For each misstatement, suggest a control that may have prevented or detected the misstatement. 4 Do 7 8 6