Internal Control Questionnaire—Sales Transaction Processing
Assertions and Questions Yes, No, N/A
Comments
Occurrence assertion: 1. Is the credit department independent of the sales department? Yes The Treasurer Department handles credit sales.
2. Are sales of the following types controlled by the same procedures described below? Sales to employees, COD sales, disposals of property, cash sales, and scrap sales. No Additional details are necessary to determine the sales types. Each of the sales type will have the same process with the exception of sales to employees.
3. Is access to sales invoice blanks restricted? Yes The documentation pertaining to invoices blanks is kept in a filing cabinet with a lock for security.
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5. All credit sales are approved for customers prior to shipment.
6. In the shipping department all bills of lading are pre-numbered and compared to the invoice.
7. Marketing is in charge of checking the accuracy of the sales for the period with an analysis or statistical check.
8. There is an accounting manual that shows how to date the sale as well as to classify the sale.
Weakness’
1. Sales order documents are not pre-numbered, and are kept in busy sales clerks’ area.
2. Sales to employees do not follow the same procedures; additional information is needed to determine the sale type.
3. Invoice number sequence is not checked for missing invoices in the billing department.
4. Bills of lading numbers are not checked for missing billing of ladings in the shipping department.
5. All credits for returned items are missing supporting documentation as to the return and who authorized.
6. Even though the sales periodic data is checked for accuracy it is not verified by the accounts receivable department. Revenue and Cash Receipts Cycle
Index Control Activity Implications Test control Test procedures
S-1 Invoices are signed by customer or salesman over than phone By having a signature, this insures the order was actually made and taken by personnel Have treasurer’s office review order to insure signature before running credit check Company can have signature verification before order is moved to treasurer office
S-2 Customers
Letters they would be on letter headed paper with the customer and business addresses on the subject and the date the letter was written content and signature.
Introduction: In this assignment I will be giving information the following point talk about each sales staff must do or be like when working for these different scenarios. Also I have included the sales technique out of four of them: Cold-calling, Face to face, Telemarketing and drop in visits. Also I have included their own personal interpersonal skills of what it takes to be a sales staff to be working for those scenarios, I have also included examples and relevant pictures.
Sales invoices are prepared in batches on a daily basis using numbered sales invoices. Sales invoice numbers are automatically generated by the company’s computer system. The accounts receivable clerk does not have appropriate computer rights to override the computer-generated invoice number. Upon preparing sales invoices, the accounts receivable clerk verifies that the first invoice number of the batch is consistent with the last invoice number of the previous batch. Inconsistencies or skipped sales invoice numbers are investigated and resolved before new sales invoices are prepared. The items shipped are compared to the items billed for proper quantity, price, and other sales order terms.
Calculate purchases, gross margin, inventory turn days, accounts receivable turn days, and accounts payable turn days for the years ended 20x2, 20x3, 20x4, 20x5
Trace a sample of shipments to determine if they have been recorded as sales in the accounting records.
Moreover, the goal of any sales analysis is to isolate the pieces which comprise the entire organization to facilitate the recognition of areas that require attention (Russell, 1950). Accordingly, this deconstruction promotes comparison of financial data which allows managers, such as Lydell, to gain a stronger representation of the organization. This contributes to the management of employees and improved sales potential through the identification of areas that require supplementation or highlighting the areas that are functioning optimally (Russell, 1950). Lydell can use the internal financial records to capture data on sales history and patterns of the business. This information would give him the knowledge to gauge current sales and provide insight for recognizing positive or negative sales trends, including changes in customer habits. Lydell could also use the information regarding sales volumes and customer locations to gauge territory concentration and sales boundaries.
These may include surveys sent to both types of associates in order to determine motivational forces behind selling. While information is gathered, action is not instantaneous. However, the data may be used in the future. The idea is to find the thought patterns behind the action of an individual.
“Pay to order” is not necessary, but it is strongly recommended as the law looks to the intention of the drawer. When the words are used clearly it shows an intention to pay either the payee or the person the payee designates, the contract is negotiable. If more than one person, the note is payable the wording is important. Payable to “Thompson and assigns” is held nonnegotiable whereas “Thompson or assigns” would be negotiable. An instrument payable to bearer may become payable to an identified person if it is specially indorsed pursuant to Section 3-205(a). An instrument payable to an identified person may become payable to bearer if affirmation is indorsed in blank pursuant to Section 3-205(b) (3-109 Negotiable instrument /UCC-Uniform commercial code/LII/Legal information institute,”
12/30/16- Member called Mail Order to initiated a refill. Customer Service agent verified the members correct shipping address but order was shipped to member’s old incorrect shipping address.
The sales and after sales services would also be immensely different from a salesperson selling bread or eggs in a local supermarket. I would place the different types of cars in this category. For instance, when I was searching to buy a family car, I must have taken at least 3 months of research, test drives, repeated visits to different car showrooms before settling on the car of my
Today a mishap transpired with an order that appeared to be incomplete. Although, this had not been caught until the entire order was on the truck. All the contents were cleared to find the two missing boxes, which caused three extra hours of unnecessary work. However, this occurrence rarely happens and can be avoided in the future by double checking orders to their invoices.
Vendor invoice #1406 was not priced, footed, and extended. Did so now to confirm. Client paid invoice with check without evidence that this step had been done.
Reviewed the Distribution Processes work products and noted that relevant FROs were mapped to each control documented for the assessable unit. No further comments at this time.
An invoice, a bill of lading or a transport document issued in connection with the transport of the goods; however, when there is submitted a bill covering freight charges or a notice from the transporter to the consignee concerning a consignment of goods, and these documents contain the same information as specified in regular bills of lading, a bill of lading need not be submitted unless specially requested, a bill covering freight charges, a certificate of origin when preferential customs treatment is requested in accordance with