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You have carried out a study of the procedures of the customer-sales cycle. It has revealed the following elements: - When products are delivered to
You have carried out a study of the procedures of the customer-sales cycle. It has revealed the following elements:
- When products are delivered to customers, two copies of a delivery note are made out. One is filed in the shippingdepartment, the second is given to the customer;
- Unpaid invoices are followed up by telephone on an ad hoc basis, depending on the availability of time in the accounts receivable department;
- The accounting department is not systematically informed of returned products or other disputes with customers.
1. Write a summary note specifying the internal control weaknesses relating to the customer-sales sales cycle, the risks they pose, and the recommendations you make.
2. What communication should the auditor make?
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