I need help with this assignment

Can you Answer: 3b, 3c, 4a, and 4b

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Apollo Internal Controls Audit Mini Case In this mini-case you will perform some internal control testing procedures required as part of audit planning. You will focus on both understanding the design of internal controls as well as testing the operation of controls. For ease your audit manager has already organized the workpapers and completed several of the required workpapers. Instructions: Read the email from your manager, then read the steps in the audit program found on Work Paper C-0 and familiarize yourself with the other work papers. Complete all the steps on the audit program instructed by your manager. When you are finished with the items on the workpaper enter your initials in the box in the top right marked "Prepared By" This entire completed workbook should be renamed as ICFR Firstname Lastname and uploaded. Date: 10 JAN 2021 12:37:42 +0000 From: "Darlene Wardlaw" Subject: Internal Control Testing These emails are NOT workpapers. Rather they are useful communications for completing your case. They do not get a workpaper reference. Happy Saturday! I know this is unexpected but I just realized that we need to wrap up some of this control testing before we move on to our other procedures next week. In October when Taylor and I went out to do interim testing we were able to make progress but there are a few things that need to get taken care of. First for the revenue cycle testing, Taylor already identified the controls and did a small sample of walkthroughs. Would you please do 5 more? I went ahead and got the documents you'll need from Samuel. We just need to update that operations testing through to the end of the year to ensure we get control coverage. I also just noticed that apparently we haven't completed any of the purchasing cycle testing. I can't believe I didn't catch this until now! I was pretty spacey right before my cruise so that seems to be where my mind was. If you'll get us started by reading through the narrative and identifying their internal controls, then building a flow chart and a testing workpaper similar to the revenue one at C-4 and C-5. Once that is done we can request a sample to finish the testing. I'll have Taylor do that next week. Sorry to crash your weekend like this. Thanks in advance) for being an awesome team player. DW Related Assertion (s) Performed by Comments FYE 12/31/2020 Workpaper Reference 1. Obtain an understanding of the company, its internal control, and its audit risk factors (including the risk of material misstatements due to fraud). Hold a discussion among engagement team members about the risks of material misstatements due to fraud. C-1 Document the discussion. 1 See team comments on C-1. DW, TC, JK, AA a Make inquiries of management and other employees about N/A the risks of fraud. Document the inquiry procedures. DW Per our preliminary discussions with management no abnormal risks were identified. b 2 DW a TC b 3 a TC 10 Controls noted. b Consider the existence of fraud risks factors. Identify and assess risks of material misstatements due to C-1 fraud and develop your responses. Complete documentation of understanding of the revenue and collection, and purchasing cycle. C-3, C-4, C-5 Complete a test of controls for the Revenue Cycle Document internal controls related to revenue. C-3 Identify significant controls for major transaction cycles. Select a sample of transactions to test for control operation. C-5 Document any deviations. Complete a test of controls for the Purchasing Cycle Document internal controls related to purchases. Identify significant controls. Select a sample of transactions to test for control operation. Document any deviations. Darlene Wardlaw: Taylor did the revenue stuff - but we still need to complete the purchasing stuff. 5 Controls remain to be tested after year end. TC 4 a b C-1 Prepared by: Reviewed by: DW Apollo Shoes, Inc. Consideration of Fraud Memo December 31, 2020 We identified the following key risk factors: 1) Significant competition in industry. 2) Control environment dominated by one individual. 3) Trending a significant increase in net income despite stagnant sales. 4) Emphasis on meeting profitability targets. 5) Concerns over product quality based upon sales returns and product litigation. 6) Concerns over inability to speak with predecessor auditor over their withdrawal after last year's engagement. In response to these key risk factors, the professional literature requires that as an audit team we: Place an increased emphasis on professional skepticism. Putting aside any prior beliefs as to management's honesty, the audit team must exchange ideas or brainstorm how frauds could occur. These discussions are intended to identify fraud risks and should be conducted while keeping in mind the characteristics that are present when frauds occur: incentives, opportunities, and ability to rationalize. Throughout the audit, our engagement team should think about and explore the question, "If someone wanted to perpetrate a fraud, how would it be done?" From these discussions, our engagement team should be in a better position to design audit tests responsive to the risks of fraud. Have discussions with management. Our engagement team is expected to inquire of management and others in the organization as to the risk of fraud and whether they are aware of any frauds. We should make a point of talking to employees in and outside management. Giving employees and others the opportunity to "blow the whistle" may encourage someone to step forward. It might also help deter others from committing fraud if they are concerned that a co-worker will turn them in Perform unpredictable audit tests. During the audit, we must test areas, locations and accounts that otherwise might not be tested. The team should design tests that would be unpredictable and unexpected by the client. Respond to management override of controls. Because management is often in a position to override controls in order to commit financial-statement fraud, the standard includes procedures to test for management override of controls on every audit. Apollo Shoes, Inc Revenue Accounting Manual 31-Dec-20 C-2 PBC APOLLO SHOES ACCOUNTING AND CONTROL PROCEDURE MANUAL Sales and Accounts Receivable Daily sales invoices shall be analyzed by sales totals in the athletic shoes product lines. Sales credits are coded to three product line sales revenue accounts. Charges to customer accounts should be dated the date of shipment. When sales invoices are computer generated, the numerical sequence shall be checked by an accounts receivable clerk monthly, and missing invoices must be explained and voided. The items shipped (as noted on the pick slip) shall be compared to the items billed for proper quantity, price, and other sales order terms. The general ledger supervisor shall compare the daily sales totals with the individual accounts posting total sent from the accounts receivable department. Discrepancies shall be investigated to help assure that the customer subsidiary accounts are posted for the same total amount posted to the control account. At the end of each month, the total of the trial balance of customer account balances (prepared by the accounts receivable department) shall be reconciled to the general ledger control account by the general ledger supervisor. Sales invoices shall be dated with the date of shipment, and totals (including product line sales for athletic shoes) are automatically accumulated and recorded in the accounts receivable control and sales revenue accounts. The general ledger supervisor shall approve all monthly summary returns entries before they are posted to the general ledger. The treasurer shall approve all cash refunds and allowance credit memos for sales returns, after initiation by customer relations personnel. The marketing vice president shall periodically analyze sales activity by product lines in comparison to budgets and forecasts and prior years' activity, Cash Management The monthly bank statements shall be accessed online and maintained by the cash management department in the treasurer's office. Personnel use the duplicate deposit slips retained when bank deposits were made, the cash receipts journal listing, and the cash disbursements listing to reconcile the general bank accounts. The payroll bank account is also reconciled, utilizing the payroll register retained by the treasurer's office. Cash management personnel shall compare cash receipts journal daily deposit records with the bank deposits and duplicate deposit slips when the general bank account reconciliation is performed. At the discretion of the director of internal audit, internal auditors will occasionally make unannounced reviews of the bank account reconciliations. They may also prepare reconciliations without prior notice given to cash management personnel. Cash Receipts and Accounts Receivable Processing All cash receipts from customers related to sales shall be credited to accounts receivable individual and control accounts. The accounts receivable department shall post credits to individual customer accounts, dating the entries with the date of the remittance list. Statements of accounts receivable balances shall be mailed or emailed to customers cach month by the accounts receivable accounting department. Customers' reports of disputes or differences shall be handled by customer relations personnel in the marketing department. Revenue narrative and controls Documentation 31-Dec-20 Prepared by: PBC, TC Reviewed by: Apollo Accounting and Control Systems: Revenue and Collection Cycle As evident in the company organization chart (A-3), Apollo has several departments and offices concerned with management, accounting, and control. The company also has an abbreviated accounting and control manual (C-2), although the manual has not been kept up to date. Officers and employees have described accounting and control procedures informally under the heading of several transaction cycles. Descriptions of the company's current revenue cycle activities appear below. Credit Approval and Sales Processing Customer orders are received primarily via the company website, but also accepted in the mail, over the telephone, and over the counter by salesclerks in the marketing department. Online orders are assigned an order number (RC#1) when completed by the customer or sales associate. The sales order documents used in the office are not prenumbered but are assigned an electronic number as soon as they are entered into the system. The clerks prepare online sales orders for telephone and counter customers, printing and then signing each one and asking the counter customers to sign in person. All sales orders contain the customer name, a customer number (usually the phone number/assigned immediately for new customers), customer address, identification of products, and the quantity ordered (RC #2). Hard copies of sales order forms with signatures are kept in the salesclerks' working arca through which many pooplo pass during the day. All sales orders are entered into the computer system daily by the salesclerks (RC #3). The salesclerks prepare an estimate of the dollar amount of the order and write it on the form. For online orders this is donc automatically. The sales orders are then sent to the credit manager, who is also in the marketing department. The credit manager manually checks new customers' credit file information using a computer-based inquiry system. If credit is approved, the credit manager approves the sales order. Online orders for established customers are automatically checked based on thresholds set and managed by the credit manager (RC #4). If credit is not approved, the customer is asked to pay in advance, and the sales order is held until notification of payment is received from the cashier (RC #5). The sales order is stamped or marked "paid" and sent to the billing department (RC #6). Likewise, when customers pay cash over the counter, the money is taken by the cashier, and the sales order is marked "paid within the sales order system and sent to the billing department. For bookkeeping convenience, these "cash" sales are treated the same as credit sales, with the invoice amount being charged to an account receivable set up for the customer, and the customer's payment being applied immediately to the same account. After credit has been approved, or a payment received, the sales orders are sent to the billing department in the controller's office. The billing clerks produce a sales invoice assigned an invoice number by the system. They double check the customer and product information from the customer order, the date, and the product unit prices from an approved price list (RC #7). Sales taxes, delivery charges, and the invoice total are computed and put on the invoice. The sales invoice, the customer order, and the sales order are sent to the accounts receivable accounting department, which is also in the controller's office. These e- documents are held in invoice numerical order in a "pending shipment" file, awaiting matching with the shipping forms (RC #8). Shipment and Delivery Upon receipt of a sales order which serves as the authorization to move goods to the shipping area (RC #9), the inventory storekeeper supervises removal of shoe products from shelves and bins. Warehouse employees utilize tablets and cloud based inventory tracking software to fulfill orders. The tablet displays sales order, and product location (RFID scanning technology) for all customer orders. As products are picked they are scanned and entered into software which flows through to the shipping receipt which flows to the sales invoice, adjusts inventory levels, and produces shipping information (weights, destination etc.). Before the package is shipped all documentation is reviewed by an inventory manager (RC #10). If partial orders are shipped due to lack of in stock inventory the sales order with the remaining items is placed in an electronic que (master pending file) to fulfill the order when inventory becomes available. Shipping information, once complete is sent to the billing and accounts receivable department. Apollo Shoes, Inc Revenue controls Documentation 31-Dec-20 C-4 PBC Marketing/Sales Customer Order Sales Order Created If orders are made via telephone or in person the sales - clerk signs and maintains a copy in the sales area. Hard copy sales orders Tresurer/Credit Mgr Credit Approval -No Customer asked to pay in advance. Order held until payment is made Cloud Master Price File Sales Database Inventory Database Credit Files Accounts Receivables Database Yes Copy sent to customer AR Adjusted/Closed Controller Credit Approval Sales Order Shipping Confirmation Sales Invoice Recording and Aging of Receivables Payment received Cash Recorded Order Closed Sales Order Inventory Items Picked and Packed Shipping label Shipping receipt Walkthrough Testing - Revenue Apollo Shoes, Inc Revenue controls Documentation 31-Des-20 C-s Prepared by: Reviewed by PBC, TC RC-1 All orders are ind an order number RC-2 Selesonders require customer smc, phone number, address, product rare and quantity in order to penerale RC-3 All sales onder madcolllinc reviewed and colored daily RC-4 The crudil mig av all new adil Toques. And is clatunic thresholds. RC-3 When credit is not approved, ordeas are but Gilled unle payment is made RC-6 Once payment is made all orders are stamped paid . RC ? Invoices are reviewed for correct products, prices, and customer infc. RC 8 Peeding shipping documents are matched with sales orders and invoices. RC-9 Asales order is required to pick pack and ship goods KC-10 Berore packzges are shipped they are reviewed by an inventory manecer Voucher32263 Vouch 24229 Vaucher36112 Voucher#38438 Vaucher#401109 Vouchert41775 Voucher41899 Voucher 40114 Vouche41617 Vauchert41517 En clive Effective Enactive Ellective line Elective Elective Enative Ellective Festive N'A INA NA NIA Erex-live Enlive Erootive Ecrativo Elective INA NA INA NA NIA Effective Effective Effective Effective Deticiet Effective Cffective Effective Efective Effective Effective Cffective Effective Effective Effective Effective Effective Bffective Effective Effectve Effective Effective Effective Effective A Trecere Effective A- Voucher #18488 was not some puiu par RC-6. Hewar il appears that the paymical was mak: D-W.Xy02) Therzlure il appears that this inzien wir allersighi. No further tesling naar Apollo Shoes, Inc Purchasing narrative and controls Documentation 31-Dec-20 C-6 Prepared by: PBC, TC Reviewed by: Asset or Supply Purchase Requisition For each required purchase the department manager of the requesting department will review and approve an employee's written request. Then he/she will submit a request via the intranet system to purchasing. Once reviewed by the purchasing team it is approved by the purchasing manager. Once approved the request is assigned to a purchaser who then places the order with a vendor from an approved vendor list. Receipt of Goods Once an approved purchase has been received it is opened and all contents are compared to the original purchase order and documented by an individual in the warehouse. Once the receipt of goods is complete it is sent to purchasing for matching to relevant documents and forwarding to either accounts payable or to be filed as complete. The goods are forwarded on to the requesting department. Cash Disbursements All disbursements shall be made by check, signed by the treasurer, including reimbursements of the petty cash funds. Checks shall be made payable to a named payee and not to "cash." Blank check stock shall be kept under lock and key in the accounts payable accounting department. Under no circumstances may blank checks be signed by the treasurer. Voided checks shall be transmitted to the treasurer for inspection and later filed in numerical order with paid checks. Cash disbursement journal entries shall be dated with the date of the check. The related monthly general ledger summary entries shall carry the date of the month summarized. Apollo Internal Controls Audit Mini Case In this mini-case you will perform some internal control testing procedures required as part of audit planning. You will focus on both understanding the design of internal controls as well as testing the operation of controls. For ease your audit manager has already organized the workpapers and completed several of the required workpapers. Instructions: Read the email from your manager, then read the steps in the audit program found on Work Paper C-0 and familiarize yourself with the other work papers. Complete all the steps on the audit program instructed by your manager. When you are finished with the items on the workpaper enter your initials in the box in the top right marked "Prepared By" This entire completed workbook should be renamed as ICFR Firstname Lastname and uploaded. Date: 10 JAN 2021 12:37:42 +0000 From: "Darlene Wardlaw" Subject: Internal Control Testing These emails are NOT workpapers. Rather they are useful communications for completing your case. They do not get a workpaper reference. Happy Saturday! I know this is unexpected but I just realized that we need to wrap up some of this control testing before we move on to our other procedures next week. In October when Taylor and I went out to do interim testing we were able to make progress but there are a few things that need to get taken care of. First for the revenue cycle testing, Taylor already identified the controls and did a small sample of walkthroughs. Would you please do 5 more? I went ahead and got the documents you'll need from Samuel. We just need to update that operations testing through to the end of the year to ensure we get control coverage. I also just noticed that apparently we haven't completed any of the purchasing cycle testing. I can't believe I didn't catch this until now! I was pretty spacey right before my cruise so that seems to be where my mind was. If you'll get us started by reading through the narrative and identifying their internal controls, then building a flow chart and a testing workpaper similar to the revenue one at C-4 and C-5. Once that is done we can request a sample to finish the testing. I'll have Taylor do that next week. Sorry to crash your weekend like this. Thanks in advance) for being an awesome team player. DW Related Assertion (s) Performed by Comments FYE 12/31/2020 Workpaper Reference 1. Obtain an understanding of the company, its internal control, and its audit risk factors (including the risk of material misstatements due to fraud). Hold a discussion among engagement team members about the risks of material misstatements due to fraud. C-1 Document the discussion. 1 See team comments on C-1. DW, TC, JK, AA a Make inquiries of management and other employees about N/A the risks of fraud. Document the inquiry procedures. DW Per our preliminary discussions with management no abnormal risks were identified. b 2 DW a TC b 3 a TC 10 Controls noted. b Consider the existence of fraud risks factors. Identify and assess risks of material misstatements due to C-1 fraud and develop your responses. Complete documentation of understanding of the revenue and collection, and purchasing cycle. C-3, C-4, C-5 Complete a test of controls for the Revenue Cycle Document internal controls related to revenue. C-3 Identify significant controls for major transaction cycles. Select a sample of transactions to test for control operation. C-5 Document any deviations. Complete a test of controls for the Purchasing Cycle Document internal controls related to purchases. Identify significant controls. Select a sample of transactions to test for control operation. Document any deviations. Darlene Wardlaw: Taylor did the revenue stuff - but we still need to complete the purchasing stuff. 5 Controls remain to be tested after year end. TC 4 a b C-1 Prepared by: Reviewed by: DW Apollo Shoes, Inc. Consideration of Fraud Memo December 31, 2020 We identified the following key risk factors: 1) Significant competition in industry. 2) Control environment dominated by one individual. 3) Trending a significant increase in net income despite stagnant sales. 4) Emphasis on meeting profitability targets. 5) Concerns over product quality based upon sales returns and product litigation. 6) Concerns over inability to speak with predecessor auditor over their withdrawal after last year's engagement. In response to these key risk factors, the professional literature requires that as an audit team we: Place an increased emphasis on professional skepticism. Putting aside any prior beliefs as to management's honesty, the audit team must exchange ideas or brainstorm how frauds could occur. These discussions are intended to identify fraud risks and should be conducted while keeping in mind the characteristics that are present when frauds occur: incentives, opportunities, and ability to rationalize. Throughout the audit, our engagement team should think about and explore the question, "If someone wanted to perpetrate a fraud, how would it be done?" From these discussions, our engagement team should be in a better position to design audit tests responsive to the risks of fraud. Have discussions with management. Our engagement team is expected to inquire of management and others in the organization as to the risk of fraud and whether they are aware of any frauds. We should make a point of talking to employees in and outside management. Giving employees and others the opportunity to "blow the whistle" may encourage someone to step forward. It might also help deter others from committing fraud if they are concerned that a co-worker will turn them in Perform unpredictable audit tests. During the audit, we must test areas, locations and accounts that otherwise might not be tested. The team should design tests that would be unpredictable and unexpected by the client. Respond to management override of controls. Because management is often in a position to override controls in order to commit financial-statement fraud, the standard includes procedures to test for management override of controls on every audit. Apollo Shoes, Inc Revenue Accounting Manual 31-Dec-20 C-2 PBC APOLLO SHOES ACCOUNTING AND CONTROL PROCEDURE MANUAL Sales and Accounts Receivable Daily sales invoices shall be analyzed by sales totals in the athletic shoes product lines. Sales credits are coded to three product line sales revenue accounts. Charges to customer accounts should be dated the date of shipment. When sales invoices are computer generated, the numerical sequence shall be checked by an accounts receivable clerk monthly, and missing invoices must be explained and voided. The items shipped (as noted on the pick slip) shall be compared to the items billed for proper quantity, price, and other sales order terms. The general ledger supervisor shall compare the daily sales totals with the individual accounts posting total sent from the accounts receivable department. Discrepancies shall be investigated to help assure that the customer subsidiary accounts are posted for the same total amount posted to the control account. At the end of each month, the total of the trial balance of customer account balances (prepared by the accounts receivable department) shall be reconciled to the general ledger control account by the general ledger supervisor. Sales invoices shall be dated with the date of shipment, and totals (including product line sales for athletic shoes) are automatically accumulated and recorded in the accounts receivable control and sales revenue accounts. The general ledger supervisor shall approve all monthly summary returns entries before they are posted to the general ledger. The treasurer shall approve all cash refunds and allowance credit memos for sales returns, after initiation by customer relations personnel. The marketing vice president shall periodically analyze sales activity by product lines in comparison to budgets and forecasts and prior years' activity, Cash Management The monthly bank statements shall be accessed online and maintained by the cash management department in the treasurer's office. Personnel use the duplicate deposit slips retained when bank deposits were made, the cash receipts journal listing, and the cash disbursements listing to reconcile the general bank accounts. The payroll bank account is also reconciled, utilizing the payroll register retained by the treasurer's office. Cash management personnel shall compare cash receipts journal daily deposit records with the bank deposits and duplicate deposit slips when the general bank account reconciliation is performed. At the discretion of the director of internal audit, internal auditors will occasionally make unannounced reviews of the bank account reconciliations. They may also prepare reconciliations without prior notice given to cash management personnel. Cash Receipts and Accounts Receivable Processing All cash receipts from customers related to sales shall be credited to accounts receivable individual and control accounts. The accounts receivable department shall post credits to individual customer accounts, dating the entries with the date of the remittance list. Statements of accounts receivable balances shall be mailed or emailed to customers cach month by the accounts receivable accounting department. Customers' reports of disputes or differences shall be handled by customer relations personnel in the marketing department. Revenue narrative and controls Documentation 31-Dec-20 Prepared by: PBC, TC Reviewed by: Apollo Accounting and Control Systems: Revenue and Collection Cycle As evident in the company organization chart (A-3), Apollo has several departments and offices concerned with management, accounting, and control. The company also has an abbreviated accounting and control manual (C-2), although the manual has not been kept up to date. Officers and employees have described accounting and control procedures informally under the heading of several transaction cycles. Descriptions of the company's current revenue cycle activities appear below. Credit Approval and Sales Processing Customer orders are received primarily via the company website, but also accepted in the mail, over the telephone, and over the counter by salesclerks in the marketing department. Online orders are assigned an order number (RC#1) when completed by the customer or sales associate. The sales order documents used in the office are not prenumbered but are assigned an electronic number as soon as they are entered into the system. The clerks prepare online sales orders for telephone and counter customers, printing and then signing each one and asking the counter customers to sign in person. All sales orders contain the customer name, a customer number (usually the phone number/assigned immediately for new customers), customer address, identification of products, and the quantity ordered (RC #2). Hard copies of sales order forms with signatures are kept in the salesclerks' working arca through which many pooplo pass during the day. All sales orders are entered into the computer system daily by the salesclerks (RC #3). The salesclerks prepare an estimate of the dollar amount of the order and write it on the form. For online orders this is donc automatically. The sales orders are then sent to the credit manager, who is also in the marketing department. The credit manager manually checks new customers' credit file information using a computer-based inquiry system. If credit is approved, the credit manager approves the sales order. Online orders for established customers are automatically checked based on thresholds set and managed by the credit manager (RC #4). If credit is not approved, the customer is asked to pay in advance, and the sales order is held until notification of payment is received from the cashier (RC #5). The sales order is stamped or marked "paid" and sent to the billing department (RC #6). Likewise, when customers pay cash over the counter, the money is taken by the cashier, and the sales order is marked "paid within the sales order system and sent to the billing department. For bookkeeping convenience, these "cash" sales are treated the same as credit sales, with the invoice amount being charged to an account receivable set up for the customer, and the customer's payment being applied immediately to the same account. After credit has been approved, or a payment received, the sales orders are sent to the billing department in the controller's office. The billing clerks produce a sales invoice assigned an invoice number by the system. They double check the customer and product information from the customer order, the date, and the product unit prices from an approved price list (RC #7). Sales taxes, delivery charges, and the invoice total are computed and put on the invoice. The sales invoice, the customer order, and the sales order are sent to the accounts receivable accounting department, which is also in the controller's office. These e- documents are held in invoice numerical order in a "pending shipment" file, awaiting matching with the shipping forms (RC #8). Shipment and Delivery Upon receipt of a sales order which serves as the authorization to move goods to the shipping area (RC #9), the inventory storekeeper supervises removal of shoe products from shelves and bins. Warehouse employees utilize tablets and cloud based inventory tracking software to fulfill orders. The tablet displays sales order, and product location (RFID scanning technology) for all customer orders. As products are picked they are scanned and entered into software which flows through to the shipping receipt which flows to the sales invoice, adjusts inventory levels, and produces shipping information (weights, destination etc.). Before the package is shipped all documentation is reviewed by an inventory manager (RC #10). If partial orders are shipped due to lack of in stock inventory the sales order with the remaining items is placed in an electronic que (master pending file) to fulfill the order when inventory becomes available. Shipping information, once complete is sent to the billing and accounts receivable department. Apollo Shoes, Inc Revenue controls Documentation 31-Dec-20 C-4 PBC Marketing/Sales Customer Order Sales Order Created If orders are made via telephone or in person the sales - clerk signs and maintains a copy in the sales area. Hard copy sales orders Tresurer/Credit Mgr Credit Approval -No Customer asked to pay in advance. Order held until payment is made Cloud Master Price File Sales Database Inventory Database Credit Files Accounts Receivables Database Yes Copy sent to customer AR Adjusted/Closed Controller Credit Approval Sales Order Shipping Confirmation Sales Invoice Recording and Aging of Receivables Payment received Cash Recorded Order Closed Sales Order Inventory Items Picked and Packed Shipping label Shipping receipt Walkthrough Testing - Revenue Apollo Shoes, Inc Revenue controls Documentation 31-Des-20 C-s Prepared by: Reviewed by PBC, TC RC-1 All orders are ind an order number RC-2 Selesonders require customer smc, phone number, address, product rare and quantity in order to penerale RC-3 All sales onder madcolllinc reviewed and colored daily RC-4 The crudil mig av all new adil Toques. And is clatunic thresholds. RC-3 When credit is not approved, ordeas are but Gilled unle payment is made RC-6 Once payment is made all orders are stamped paid . RC ? Invoices are reviewed for correct products, prices, and customer infc. RC 8 Peeding shipping documents are matched with sales orders and invoices. RC-9 Asales order is required to pick pack and ship goods KC-10 Berore packzges are shipped they are reviewed by an inventory manecer Voucher32263 Vouch 24229 Vaucher36112 Voucher#38438 Vaucher#401109 Vouchert41775 Voucher41899 Voucher 40114 Vouche41617 Vauchert41517 En clive Effective Enactive Ellective line Elective Elective Enative Ellective Festive N'A INA NA NIA Erex-live Enlive Erootive Ecrativo Elective INA NA INA NA NIA Effective Effective Effective Effective Deticiet Effective Cffective Effective Efective Effective Effective Cffective Effective Effective Effective Effective Effective Bffective Effective Effectve Effective Effective Effective Effective A Trecere Effective A- Voucher #18488 was not some puiu par RC-6. Hewar il appears that the paymical was mak: D-W.Xy02) Therzlure il appears that this inzien wir allersighi. No further tesling naar Apollo Shoes, Inc Purchasing narrative and controls Documentation 31-Dec-20 C-6 Prepared by: PBC, TC Reviewed by: Asset or Supply Purchase Requisition For each required purchase the department manager of the requesting department will review and approve an employee's written request. Then he/she will submit a request via the intranet system to purchasing. Once reviewed by the purchasing team it is approved by the purchasing manager. Once approved the request is assigned to a purchaser who then places the order with a vendor from an approved vendor list. Receipt of Goods Once an approved purchase has been received it is opened and all contents are compared to the original purchase order and documented by an individual in the warehouse. Once the receipt of goods is complete it is sent to purchasing for matching to relevant documents and forwarding to either accounts payable or to be filed as complete. The goods are forwarded on to the requesting department. Cash Disbursements All disbursements shall be made by check, signed by the treasurer, including reimbursements of the petty cash funds. Checks shall be made payable to a named payee and not to "cash." Blank check stock shall be kept under lock and key in the accounts payable accounting department. Under no circumstances may blank checks be signed by the treasurer. Voided checks shall be transmitted to the treasurer for inspection and later filed in numerical order with paid checks. Cash disbursement journal entries shall be dated with the date of the check. The related monthly general ledger summary entries shall carry the date of the month summarized