{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-28T03:33:35-04:00", "answer_date": "2024-06-28 03:33:35", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4230438", "url": "\/study-help\/questions\/you-are-a-staff-auditor-for-smith-jones-associates-4230438", "question_creation_date_js": "2024-06-28T03:33:35-04:00", "question_creation_date": "Jun 28, 2024 03:33 AM", "meta_title": "[Solved] You are a staff auditor for Smith, Jones | SolutionInn", "meta_description": "Answer of - You are a staff auditor for Smith, Jones & Associates, CPAs. As part of the audit for your client College Business Com | SolutionInn", "meta_keywords": "staff,auditor,smith,jones,associates,cpas,part,audit,client,college,business,computers", "question_title_h1": "You are a staff auditor for Smith, Jones & Associates, CPAs. As part of the audit for your client College Business Computers (CBC), you have", "question_title": "You are a staff auditor for Smith, Jones & Associates, CPAs. As", "question_title_for_js_snippet": "You are a staff auditor for Smith, Jones Associates, CPAs As part of the audit for your client College Business Computers (CBC), you have been assigned control testing for the sales cycle You are to follow the audit program below, and document your testing and results on the audit workpaper provided CBC Sales Cycle Process and Controls Narrative 1 Sales orders from customers are taken over the phone and online, and processed by the sales representative, Tad Johnson Tad fills out a Sales Order form in triplicate with all customer information as well as quantities and products ordered For all orders under $20,000 , Tad goes into the CBC system and checks to ensure that the customer is not on credit hold Tad documents this verification by writing his initials by the customer name on the Sales Order For any order of $20,000 or more , Tad takes the Sales Order to the credit department for review by the Credit Manager, Emily Yun If she approves the order, Emily writes her initials by Tad's next to the customer name Tad then sends the initialed Sales Order to the shipping department for processing 2 The shipping department pulls the products ordered from the warehouse and prepares a Shipping Document in duplicate The shipper types in the quantity of each item that will be shipped on the Shipping Document If all products ordered will be shipped, the shipper writes Complete at the bottom of the Shipping Document If any of the ordered products are out of stock, the shipper writes Incomplete with the quantity not shipped noted The notated Shipping Document along with the Sales Order is then sent to the Accounts Receivable department for billing of correct quantities 3 The Accounts Receivable department prepares the Sales Invoices The A R clerk checks the unit prices from the Sales Order to the company's price list If all prices are correct, a Sales Invoice is prepared in duplicate using those prices and the A R clerk writes Verified at the top of the Unit Price column on the Sales Invoice If there are any unit price discrepancies, the A R clerk notes the discrepancy on the invoice and takes the invoice to the company Controller, Ali Cantar for approval Ali investigates the issue and, if the price variance is approved, writes Approved and initials the new price on the Sales Invoice 4 The invoice packet, which includes the Sales Order, the Shipping Document, and the Sales Invoice are stapled together and filed in the A R department files 5 The client will provide the Sales Journal and the Invoice Packets as requested These are CLIENT documents, so you may not write on them Audit Program Sales Cycle Control Testing 1 Using the Sales Journal, select all sales invoices over $15,000 for testing Record each selected Sales Invoice number and amount on your audit workpaper 2 Obtain the invoice packet from the client for each invoice selected 3 Go through all audit steps for each invoice packet, one at a time Record your testing and findings on your audit workpaper as you complete each step for each invoice packet Perform the following tests of controls for each selected invoice a The Invoice packet includes Sales Order, Shipping Document, and Sales Invoice b The Sales Representative initialed Sales Order by customer name indicating verification that customer is not on credit hold c The Credit Manager initialed Sales Order by customer name indicating approval of orders $20K d Complete is written on Shipping Document indicating all products ordered were shipped or Incomplete is written, with the quantity not shipped noted, if any products ordered were not shipped e Verified is written on Sales Invoice at unit price column noting that the item prices were checked to the approved price list, or Approved and the Controller's initials on any price different from the approved price on the Sales Invoice 4 Any exceptions in steps a e are to be noted with a new, separate tickmark and explained clearly in the tickmark legend COLLEGE BUSINESS COMPUTERS The Corner of Perimeter Drive and College Avenue Invoice Any Town USA, 12345 Phone 1 987 756 2831 Fax 1 987 756 1473 Invoice 6559 Date 11 23 2008 Customer Ready Mix Concrete Ship To Ready Mix Concrete 1625 River Road 1625 River Road Any Town, USA 12345 Any Town, USA 12345 Shipping Document No 5005 Description Quantity Unit Price Extended Price Computer multimedia 5 2,998 00 14,990 00 21 monitor 5 598 00 2,990 00 laser jet printer 5 398 00 1,990 00 Invoice Total 19,970 00Tickmark Procedure Performed Explanation of Findings Exceptions Involve packet indudes Sales Order, Shipping Document, and Sales Involve T Noted Sales Rep Initials on Sales Order by customer name indicating verification that customer is not on credit hold Y Noted Credit Manager Initials on Sales Order by customer name indicating approval of orders $20k C Noted Complete written on Shipping Document indicating all products ordered were shipped Noted Incomplete and the quantity not shipped written on Shipping Document If all products ordered were not shipped V Noted Verified on Sales Invoice at unit price column noting that item prices were checked to the approved price list A Noted Approved and the Controller's Initials on any price different from the approved price on the Sales Invoice n a Not Applicable for this itemControl Testing Results Sample Sales Sales E b C d Invoice Invoice Invoice No Credit Credit Mgr Shipped Invoice Amount Packet Hold Approval Complete Prices Complete $20k Verified Example 4726 $18,000 T In a Cor l Vor A 1 WU 4 10 12", "question_description": "\"image

You are a staff auditor for Smith, Jones & Associates, CPAs. As part of the audit for your client College Business Computers (CBC), you have been assigned control testing for the sales cycle.You are to follow the audit program below, and document your testing and results on the audit workpaper provided<\/u>.<\/p>

<\/p>

CBC Sales Cycle Process and Controls Narrative<\/strong><\/p>

1.Sales orders from customers are taken over the phone and online, and processed by the sales representative,Tad Johnson<\/strong>. Tad fills out a Sales Order form in triplicate with all customer information as well as quantities and products ordered.For all orders under $20,000<\/u>, Tad goes into the CBC system and checks to ensure that the customer is not on credit hold. Tad documents this verification by writing his initials by the customer name on the Sales Order.For any order of $20,000 or more<\/u>, Tad takes the Sales Order to the credit department for review by the Credit Manager,Emily Yun<\/strong>. If she approves the order, Emily writes her initials by Tad's next to the customer name. Tad then sends the initialed Sales Order to the shipping department for processing.<\/p>

2.The shipping department pulls the products ordered from the warehouse and prepares a Shipping Document in duplicate. The shipper types in the quantity of each item that will be shipped on the Shipping Document. If all products ordered will be shipped, the shipper writes \"Complete\" at the bottom of the Shipping Document. If any of the ordered products are out of stock, the shipper writes \"Incomplete\" with the quantity not shipped noted. The notated Shipping Document along with the Sales Order is then sent to the Accounts Receivable department for billing of correct quantities.<\/p>

3.The Accounts Receivable department prepares the Sales Invoices. The A\/R clerk checks the unit prices from the Sales Order to the company's price list. If all prices are correct, a Sales Invoice is prepared in duplicate using those prices and the A\/R clerk writes \"Verified\" at the top of the Unit Price column on the Sales Invoice. If there are any unit price discrepancies, the A\/R clerk notes the discrepancy on the invoice and takes the invoice to the company Controller,Ali Cantar<\/strong>for approval. Ali investigates the issue and, if the price variance is approved, writes \"Approved\" and initials the new price on the Sales Invoice.<\/p>

4.The invoice packet, which includes the Sales Order, the Shipping Document, and the Sales Invoice are stapled together and filed in the A\/R department files.<\/p>

5.The client will provide the Sales Journal and the Invoice Packets as requested.These are CLIENT documents, so you may not write on them!<\/strong><\/p>

<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

<\/p>

Audit Program: Sales Cycle Control Testing<\/strong><\/p>

1.Using the Sales Journal, select all sales invoices over $15,000 for testing. Record each selected Sales Invoice number and amount on your audit workpaper.<\/p>

2.Obtain the invoice packet from the client for each invoice selected.<\/p>

3.Go through all audit steps for each invoice packet, one at a time. Record your testing and findings on your audit workpaper as you complete each step for each invoice packet. Perform the following tests of controls for each selected invoice:<\/p>

a.The Invoice packet includes Sales Order, Shipping Document, and Sales Invoice.<\/p>

b.The Sales Representative initialed Sales Order by customer name indicating verification that customer is not on credit hold.<\/p>

c.The Credit Manager initialed Sales Order by customer name indicating approval of orders > $20K.<\/p>

d.\"Complete\" is written on Shipping Document indicating all products ordered were shipped or \"Incomplete\" is written, with the quantity not shipped noted, if any products ordered were not shipped.<\/p>

e.\"Verified\" is written on Sales Invoice at unit price column noting that the item prices were checked to the approved price list, or \"Approved\" and the Controller's initials on any price different from the approved price on the Sales Invoice.<\/p>

4.Any exceptions in steps a-e are to be noted with a new, separate tickmark and explained clearly in the tickmark legend.<\/p>

<\/p>

<\/p>

\"image\"image\"image<\/div><\/div><\/div> COLLEGE BUSINESS COMPUTERS The Corner of Perimeter Drive and College Avenue Invoice Any Town USA, 12345 Phone: 1 987 756 2831 Fax: 1 987 756 1473 Invoice # 6559 Date: 11\/23\/2008 Customer: Ready Mix Concrete Ship To: Ready Mix Concrete 1625 River Road 1625 River Road Any Town, USA 12345 Any Town, USA 12345 Shipping. Document No.5005 Description Quantity Unit Price Extended Price Computer - multimedia 5 2,998.00 14,990.00 21\" monitor 5 598.00 2,990.00 laser jet printer 5 398.00 1,990.00 Invoice Total: 19,970.00Tickmark Procedure Performed \/ Explanation of Findings & Exceptions Involve packet indudes Sales Order, Shipping Document, and Sales Involve T Noted Sales Rep Initials on Sales Order by customer name indicating verification that customer is not on credit hold Y Noted Credit Manager Initials on Sales Order by customer name indicating approval of orders > $20k C Noted \"Complete\" written on Shipping Document indicating all products ordered were shipped Noted \"Incomplete\" and the quantity not shipped written on Shipping Document If all products ordered were not shipped V Noted \"Verified\" on Sales Invoice at unit price column noting that item prices were checked to the approved price list A Noted \"Approved\" and the Controller's Initials on any price different from the approved price on the Sales Invoice n\/a Not Applicable for this itemControl Testing Results Sample # Sales Sales E b. C. d. Invoice # Invoice Invoice No Credit Credit Mgr. Shipped Invoice Amount Packet Hold Approval Complete Prices Complete >$20k Verified Example 4726 $18,000 T In\/a Cor l Vor A 1 WU 4 10 12", "transcribed_text": "", "related_book": { "title": "Global Strategy", "isbn": "0357512367, 978-0357512364", "edition": "5th Edition", "authors": "Mike W. Peng", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/649592eaa157d_32303.jpg", "uri": "\/textbooks\/global-strategy-5th-edition-9780357512364", "see_more_uri": "" }, "free_related_book": { "isbn": "B0BPGBV4F3", "uri": "\/textbooks\/airbnb-guru-how-to-make-a-six-figure-income-without-owning-any-property-1st-edition-979-8367552782-254055", "name": "Airbnb Guru How To Make A Six Figure Income Without Owning Any Property", "edition": "1st Edition" }, "question_posted": "2024-06-28 03:33:35", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/you-just-landed-a-job-as-an-accounting-intern-for", "description": "You just landed a job as an accounting intern for the Veterans Administration. 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