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You have been assigned to perform tests of controls on the sales system at EDB as part of the 30 June 2018 audit. EDB is
You have been assigned to perform tests of controls on the sales system at EDB as part of the 30 June 2018 audit. EDB is a wholesaler of a wide range of products. During testing, you noted the following errors: 1. Invoice no. 839 issued on 25 September 2017 contained incorrect prices. Three units were charged at $543 each instead of $453. The error was discovered when the customer rang to complain about being overcharged. 2. In taking the physical inventory, the last shipments for the day were excluded from inventory and were not included as a sale until the subsequent year. Required: Treating each of the listed errors independently: Identify the assertions that are violated as a result of the errors listed above b. Describe the internal control weaknesses in the revenues process of the company Describe the application controls that would have prevented or detected each of the errors. a. c
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