1a. Which of the following are preventive controls? (Several choices may be correct.)

D. Stamp invoices as paid.

H. Sequential pre-numbered receiving reports should be used. These should be blank, and as the receiver receives the goods, they should be counted and the form completed.

G. The sales manager reviews daily shipments, total sales, and sales per unit shipped.

B. Perform bank reconciliations, and follow up on unexpected outstanding items.

F. Have reconciling items posted each month.

C. The computer performs a daily comparison of quantities shipped to quantities billed. If differences are revealed, a report is generated for review and follow-up by the billing supervisor.

A. Have someone in the accounts payable department review coding prior to posting.

E. Perform quarterly reviews of credit balances in accounts receivable to determine their causes.

1b. Which of the following is NOT an example of a detective control?

sales manager reviews daily shipments, total sales, and sales per unit shipped for accuracy

sales invoices are priced automatically using a master pricing file

quarterly review of credit balances in accounts receivable to determine the cause

bank reconciliation and follow-up of unexpected outstanding items