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Question: Drop Down Options: Drop Down Options: A summary of the controls for the revenue and cash receipts cycle of Keystone Computers & Networks, Inc.,
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Drop Down Options:
Drop Down Options:
A summary of the controls for the revenue and cash receipts cycle of Keystone Computers & Networks, Inc., appears in this appendix. a. For the following three controls over sales, indicate one type of error or fraud that the control serves to prevent or detect. Select your solution as follows: (Each of the "Error or Fraud Controlled" may be used only once.) Error or Fraud Controlled 1. Controls the recording of sales to ensure completeness. 2. Controls errors in the delivery and billing of sales transactions. 3. Controls the recording of fictitious sales and inaccurate sales to customer accounts. Control Error or Fraud Controlled 1. Application controls are applied when customer orders are entered by the sales order clerk. 2. The computer assigns numbers to sales invoices when they are prepared. 3. Monthly statements are mailed to customers. 1 2 3 b. For the following three controls over cash receipts, indicate one type of error or fraud that the control serves to prevent or detect. Select your solution as follows: (Each of the "Error or Fraud Controlled" may be used only once.) Error or Fraud Controlled 1. Controls the abstraction of cash and the incorrect recording of cash receipts and cash sales. 2. Controls the embezzlement of cash receipts and errors in and incomplete postings to accounts receivables records. 3. Controls errors in the recording of cash and controls the abstraction of cash. Error or Fraud Controlled Control 1. Cash receipts are prelisted by the receptionist. 2. The accounting manager reconciles control totals generated by the accounts receivable computer program. 3. The computer summaries of cash collections and cash sales are reconciled to prelistings of cash receipts and cash deposits by the accounting manager. 1 2 3Step by Step Solution
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