AUDITING 4304-HOMEWORK ASSIGNMENT FOR NOVEMBER 13, 2018 Due back on November 20, 2018 Learning Objective 14-4 as follows: The Meyers Pharmaceutical Company, a drug manufacturer, has the following internal controls for billing and recording accounts receivable: You are the Auditor, in order to understand the Meyers Billing system, you will read the scenario below and make a Flowchart of the billing function as a means of understanding the system. An incoming customer's purchase order is received in the order department by a clerk who prepares a prenumbered company sales order form on which is inserted the pertinent information, such as the.customer's name and address, customers account number, quantity, and items ordered. After the sales order form has been prepared, the customer's purchase order is attached to it. The sales order form is then passed to the credit department for credit approval. Rough approximations of the billing values of the orders are made in the credit department, for those accounts on which credit limitations are imposed. After investigation, approval of credit is noted on the form. Next the sales order form is passed to the billing department, where a clerk uses a computer to generate the customer's invoice. It automatically multiplies the number of items times the unit price and adds the extended amounts for the total amount of the invoice. The billing clerk determines the unit prices for the items from a list of billine orices. The invoice copies are 1. 2. 3. AUDITING 4304-HOMEWORK ASSIGNMENT FOR NOVEMBER 13, 2018 Due back on November 20, 2018 Learning Objective 14-4 as follows: The Meyers Pharmaceutical Company, a drug manufacturer, has the following internal controls for billing and recording accounts receivable: You are the Auditor, in order to understand the Meyers Billing system, you will read the scenario below and make a Flowchart of the billing function as a means of understanding the system. An incoming customer's purchase order is received in the order department by a clerk who prepares a prenumbered company sales order form on which is inserted the pertinent information, such as the.customer's name and address, customers account number, quantity, and items ordered. After the sales order form has been prepared, the customer's purchase order is attached to it. The sales order form is then passed to the credit department for credit approval. Rough approximations of the billing values of the orders are made in the credit department, for those accounts on which credit limitations are imposed. After investigation, approval of credit is noted on the form. Next the sales order form is passed to the billing department, where a clerk uses a computer to generate the customer's invoice. It automatically multiplies the number of items times the unit price and adds the extended amounts for the total amount of the invoice. The billing clerk determines the unit prices for the items from a list of billine orices. The invoice copies are 1. 2. 3