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7 (OBECTIVES 0-1, 10-4, 10-6) The following misstatements are included in the account- e records of the Joyce Manufacturing Company: ing L. A material sale was recorded on the last day of the year even though the goods were not shipped until three days later. 2.Merchandise was shipped to a customer, but no bill of lading was prepared. Because billings are prepared from bills of lading, the customer was not billed. 3. The controller approved a payment to a consulting firm owned by his sister. The con- sulting firm did not actually perform any services for the company 4 The shipping clerk included several additional valuable items in a shipment that were not included in the customer's order and were not invoiced to the customer. The shipping clerk has an arrangement with the customer to share the proceeds from sales of the additional items shipped. 5. Cash paid on accounts receivable was stolen by the mail clerk when the mail was opened. 6. A sales invoice was miscalculated by $1,000 as a result of a key-entry mistake. 7. 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. a. Identify whether each misstatement is an error or fraud. u.For each misstatement, list one or more procedures that could be implemented to prevent it from occurring on a continuing basis. frach misstatement, identify evidence the auditor can use to uncover it. Requi