and in your textbook in table 10-5 on pg.357 ) and identify an internal control procedure that (if properly designed & implemented), could assist in preventing & detecting errors or irregularities. List of controls to choose from (note: you may use some controls more than once, and others you will not need at all this is not a matching exercise): a. Shipping clerks compare goods received from the warehouse with the details on the shipping docs. b. Approved sales orders are required for goods to be released from the warehouse c. Monthly statements are mailed to all customers with outstanding balances. d. Shipping clerks compare goods received from the warehouse with approved sales orders. e. Customer orders are compared with the inventory master file to determine whether items ordered are in stock 1. Daily sales summaries are compared with control totals of invoices 8. Shipping documents are compared with sales invoices when goods are shipped. h. Sales invoices are compared with the master price file. Customer orders are compared with an approved customer list. J. Sales orders are prepared for each customer order k. control amounts posted to the AR subledger are compared with control totals of invoices 1.Sales invoices are compared with shipping documents and approved cutomer orders before invoices are mailed, m. pre-numbered credit memos are used for granting credit for goods returned. n. Goods returned for credit are approved by the supervisor of the sales department. o. Remittance advices are separated from the checks in the mailroom and forwarded to the accounting department p. Total amounts posted to the AR subledger from remittance advices are compared with the validated bank deposit slip, 9. The cashier examines each check from proper endorsement. r. Validated deposit slips are compared with the cashier's daily cash summaries. 5. an employee, other than the bookkepper, periodically prepares a bank reconciliation L. The same employee who issues receiving reports evidencing actual return of goods approves sales returns. 1. Invoices for goods sold are posted to incorrect customer accounts. Assertion: Control (indicate letter from a to t): QUESTION 2 2. Goods ordered by customers are shipped but are not billed to anyone. Assertion: Control (indicate letter from a to t): QUESTION 3 3. Invoices are sent for shipped goods but are not recorded in the sales journal. * Question Completion Status: 3. Invoices are sent for shipped goods but are not recorded in the sales journal. Assertion: Control (indicate letter from a to t): QUESTION 4 4. Invoices are sent for shipped goods and are recorded in the sales journal but are not posted to any custome account Assertion: Control (indicate letter from a tot): 7. Goods shipped to customers do not agree with goods ordered by customers. Assertion: Control (indicate letter from a to t): QUESTION 8 8. Customers' checks are received for less than the customers' full account balance but the customers' full account balances are credited. Assertion: Control (indicate letter from a to t): QUESTION 9 9. Different customer accounts are each credited for the same cash receipt. Assertion: QUESTION 8 8. Customers' checks are received for less than the customers' full account balance but the customers' full account balances are credited. Assertion: Control (indicate letter from a to t): QUESTION 9 9. Different customer accounts are each credited for the same cash receipt. Assertion: Control (indicate letter from a to t)
