Question
Consider the input of phone orders within the sales order entry processes: 1. Describe one input error that, if uncorrected, will lead to financial statement
Consider the input of phone orders within the sales order entry processes:
1. Describe one input error that, if uncorrected, will lead to financial statement misstatement.
2. For the error described in 1.,
- Indicate which income statement accounts will be misstated.
b.For each account affected, indicate whether the misstatement will lead to understatement or overstatement
3. For the error described in 1. , describe an accounting control that could reduce the risk of the error affecting the financial statements
4. If the auditor decides the control in question 3. can be relied on, what are the next steps the audit team needs to take?
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