The following items represent errors tht often occur in an automated environment . for easch error (listed as A through G), identify a control activity that would have been effective in either preventing or detecting the error.

A. The selling price for all products handle by a particular company salesperson was reduced from authorized prices by 25% to 40%. The salesperson was paid commission on gross sales made. Subsequently, management found that other sales personnel also reduced price in order to meet sales target.

B. An employee in the sales order department who was upset about an inadequte pay raise copied the client s product master file and sold it to a competitor. The master file contained information on the cost and sales price of each product, as well as special discounts given to customer.

C. An individual in the sales department accessed the product master file and, in an attempt to change prices for a specific customer, ended up changing price for the products for all customer.

D. A nonexistent paart number was included in the description of goods on a shipping document. Fortunately, the individual packing the item for shipment was able to identify the product by its description and included it in the order. The item was not biled, however, because it was not correctly identified in the system.

E. An account receivable clerk with acces to entering cash remittances misappropriated the cash remittances and recorded the credit to the customers account as a discount.

F. An employee consistently misstated his time card by returning at night and punching out then, rather than when his shift was over at 3:30 p.m. instead of being paid for 40 hours per week, he was paid, at average, for over 60 hours per week for almost one year. When accused of the error, he denied any wrongdoing and quit.

G. A customer order was filled and shipped to a farmer customer, who had already declared bankruptcy and already owed a large amount to the company that was most likely uncollectible. The company s standard billing terms are 2%,10 days, or net 30.