in the Revenue Cycle. You note the following scenarios.

Required: LIST the internal control threats in the below scenarios and list the internal controls that would prevent and/or detect the threat.

D. Sales are made via telephone. Most sales are on credit-with your company extending the credit. Sales data are entered into the system by a salesclerk who inputs the customer name, price, part number, and quantity into the system. The salesclerk manually totals the order. If the customer is not in the system, the sales clerk adds the customer to the master file.

E. The clerk then sends a copy of the sales order to the shipping department. Upon receipt of the sales order, the shipping department pulls the merchandise, assembles it on a pallet, and completes the bill of lading. The merchandise is then loaded on a truck and sent on its way.

The shipping department enters SHIPPED on the sales order and sends it to the sales accounting department. The Sales Accounting Department prepares an invoice, entering all the data from the sales order: price, quantity, part number, customer name and number.

F. A copy of the invoice is sent to the customer and another copy is sent to the credit department for account receivable balance update. Payment is made directly to the A/R department who posts the payment and deposits the checks. A clerk in accounts receivable reconciles the bank statement.