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auditing GGG Corp. sells its products to clients ranging from proprietorsentities. Most of GGG's suppliers are small firms. GGG is contrmembers, and most of the

auditing

image text in transcribed GGG Corp. sells its products to clients ranging from proprietorsentities. Most of GGG's suppliers are small firms. GGG is contrmembers, and most of the employees are casual staff employeseasons (November 1 through January 15, and May 1 to July 1managers feel that on-the-job training is adequate for their needsavings from using temporary staff are reflected in the profits ththe family each year.The company has made a niche in its market by guaranteeing ecustomer service. When a customer order is received, either bycustomer service clerk (CSC) who takes the order checks thatstock and the correct price by checking an on-line database ofgoods are available, the clerk then personally phones the custoorder, including both quantity and price for each item and the exorder. The clerk then prepares a sales invoice and faxes a copypolicy is for the sales invoice to show a shipping date of 1 day fclerk then walks to the warehouse (adjacent to the sales office)takes them to shipping-The company has a shipping staff of 4 people, and the shippingany goods without a sales invoice initialed by the CSC. The shipdetermined to reduce the number of shipping errors. This year,occurred in which there was no sales invoice initialed and attacOne of these turned out to be an urgent shipment to a long-timemanager's verbal instructions. In that case, the shipping clerk nprovided a sales invoice within 1 day for the shipping records. Aresulted in the CSC being fired for fraud when it was discoveredshipment of goods to a friend at below cost. Therefore, only theconsidered to be true errors. If the sales invoice does not indicato pay the shipping costs, then GGG sends the goods FOB ship

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