Case Study: The following misstatements are included in the accounting records of Joyce Manufacturing Company LTD;

1. A sale invoice was in error by $1000 as a result of a key- entry mistake.

2. A material sale was unintentionally recorded for the second time on the last day of the year. The sale had originally been recorded two days earlier.

3.Cash paid on accounts receivable was stolen by the mail clerk when the mail was opened.

4. Cash paid on accounts receivable that had been prelisted by a secretary was stolen by the bookkeeper who records cash receipts and accounts receivable. He failed to record the transactions.

5. A shipment To a customer wasn' t billed because of the loss of the bill of lading.

6. Merchandise was shipped to a customer, but no bill of lading was prepared. Because billings are prepared from bills of lading, the customer wasn't billed.

7. A sale to a residential customer was unintentionally classified as a commercial sale.

8. Sales generated through the company's website are recorded at the point the customers submit the orders online.

Required

a Identify whether each misstatement is an error or fraud.

b For each misstatement , list one or more controls that should have prevented it from occuring on a continuing basis.

c For each misstatement, identify evidence the auditor could use to uncover it.