V 8.10 currently under review: analysis of their Total value 279 obtained Transaction value $1-$500 $501-$1000 $1001-$2500 >$2500 TOTAL $357 950 $455 845 $287 675 $180 000 $1 281 470 35.6 22.5 14.0 100.0 a 8.10 The sales and warehouse of Truly Legit, a retail company operates as follows and is existing sales data for credit sales in the financial year just ended the following data has been Truly Legit is implementing a new credit sales approval system. Based on an The current system has a standard sales process whereby the sales person provides the approvd the warehouse and serves the dual purpose of a picking ticket and shipping authorisation. The at the end of the day to the warehouse. If a new customer comes in off the street, then the sales (a) Using the COSO framework, derive control activities that could be implemented within (b) For each control activity that you identified in (a), identify the information av communication necessary as well as how monitoring can occur to assess the paso Number of transactions 1431 585 145 60 2221 person adds them to the system immediately and gives them the default credit limit of $750 Customer credit limits are not checked unless the customer name appears on a credit warning list, which is produced by the accounts receivable division at the start of each month. All sales follow this process. The stages of the COSO framework, as they apply to Truly Legit, are: . control environment. The board of directors is constantly receiving feedback from the various functional divisions about their performance and meeting of targets. Additionally, the board places great emphasis on corporate governance and has held numerous organisation-wide workshops and training sessions for middle-level management to reinforce the importance of proper governance and control. The board also has an audit committee, who monitor internal control functionality, which is comprised wholly of non-executive directors. risk assessment: Management is concerned about the following risks in the sales process. Risk Sales to customers who have exceeded their credit limit Large transactions taking place without proper approval Fraudulent sales of low value entering the system Goods being shipped without proper authorisation Sales orders going missing between sales person and warehouse . Customers' records containing nonexistent customers control activities . information and communication . monitoring Required . the sales process to overcome the risks involved. performance