Control Error Of Fraud Controlled

845 Words4 Pages
11 A-1 a. Control Error of Fraud Controlled Application controls are applied when customer orders are entered by the sales order clerk. Controls the errors in delivery and billing of sales transactions. The computer assigns numbers to sales invoices when they are prepared. Controls that sales invoices will be completed and accurate. Monthly statements are mailed to customers Controls that sales are inputted correctly and that customer can check the sales record. b. Control Error or Fraud Controlled Cash receipts are prelisted by the receptionist. Controls errors that could be made when recording cash receipts. The accounting manager reconciles control totals generated by the accounts receivable computer program. Control embezzlement of…show more content…
11B-1 1. KCN has engaged in a strategy to sell to customers with higher credit risk. a. Review the aged trial balance of accounts receivable with the president b. Review confirmation exceptions for indications of disputed amounts c. Analyze and review trends in the following relationships i. Accounts receivable to net sales ii. Allowance for bad debts to accounts receivable iii. Bad debt expense to net sales d. Review credit memoranda for sales returns and allowances through the last day of fieldwork to determine if an adjustment is needed to record the items as of year-end e. Perform accounts receivable turnover 2. The officers of the company receive significant bonuses based on quarterly results a. Select a sample of customers’ accounts for positive
Open Document