The following are misstatements that can occur in the sales and collection cycle:

1. A customer number on a sales invoice was transposed and, as a result, charged to the wrong customer. By the time the error was found, the original customer was no longer in business.

• 2. A former computer operator, who is now a programmer, entered information for a fictitious sales return and ran it through the computer system at night. When the money came in, he took it and deposited it in his own account.
• 3. A nonexistent part number was included in the description of goods on a shipping document. Therefore, no charge was made for those goods.
• 4. A customer order was filled and shipped to a former customer that had already filed for bankruptcy.
• 5. The sales manager approved the price of goods ordered by a customer, but he wrote down the wrong price.
• 6. A computer operator picked up a computer-based data file for sales of the wrong week and processed them through the system a second time.
• 7. For a sale, a data entry operator erroneously failed to enter the information for the salesman