Question
Question 2 (10 marks) You are an audit supervisor of MK & Co and are currently reviewing documentation for Glory Cos sales system. You are
Question 2 (10 marks)
You are an audit supervisor of MK & Co and are currently reviewing documentation for Glory Cos sales system. You are provided with the following internal control procedures: Sales order requests are checked against the customers account and initialled by the sales officer. Any new customer is referred to the credit control department for checking the credit limit and credit status before the order is accepted. All orders received are recorded on prenumbered sales order forms filled in sequential order. Pre-numbered delivery notes will be issued followed by delivery of goods after the final checking on the details of the goods to be delivered. The warehouse manager will sign for such approval before delivery. Invoices will be issued, reviewed and approved and will then be sent to the client for payment. All sales invoices and credit notes are pre-numbered and in sequential order.
Required: Suggest tests of Glorys internal control system which may be performed to ensure that the managements policies and procedures regarding the sales cycle are actually being implemented.
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