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. 2. The incorrect price was used on sales invoices for billing shipments to customers because the wrong price was entered into the computer master file of prices. 3. A vendor invoice was paid even though no merchandise was ever received. The ac- counts payable software application does not require the input of a valid receiving report number before payment can be made. 4. Employees in the receiving department took sides of beef for their personal use. When a shipment of meat was received, the receiving department filled out a receiv- ing report and forwarded it to the accounting department for the amount of goods actually received. At that time, two sides of beef were put in an employee's pickup 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 physical count of inventory of the retail grocery, one counter wrote down the wrong description of several products and miscounted the quantity. 7. A salesperson sold an entire carload of lamb at a price below cost because she did not know the cost of lamb had increased in the past week. AUDIT PROCESS 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 transaction-related management assertions that have not been met. c. For each misstatement, suggest a control that may have prevented or detected the misstatement. 11-26 (OBIECTIVE 11-3) The division of the following duties is meant to provide the best