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3 Cards in this Set
- Front
- Back
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Tests of controls over occurence and existence assertion. |
- Observe a d evaluate whether proper sevregation of duties is operating. - For a sample of sales invoices ensure there s a related sales order form that has been authorised and shipping documentation. - Exami e application controls for authorisation. - Review and test entity's procedures for accounting for numerical sequences of invoices. - Review entity's procedures for sending out monthly statements and deali g with customer queries and complaints. - Review entity's procedures for granting credit to customers. - Examine a sample of sales orders for evidence of proper credit approval by the appropriate senior staff member. - Examine application controls for credit limits. - Review all new customer files to ensure satisfactory credit references have been obtained. - verify that price lists and terms of trade are properly documented, authorised and communicated. - Examine application controls for authorised prices and terms. |
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Control objectives, controls, and test of controls of the sales completeness assertion. |
- objective :To ensure that all revenue relating to goods dispatched is recorded. - Control : Accounting for numerical sequences of invoices. Test of control : review and tests entity's procedures for accounting for numerical sequences of invoices. - objective : To ensure that all goods and services sold are correctly invoiced. - Control : Shipping / despatch documentation is matched to sales invoices . - Control : sales invoices are reconciled to the daily sales report. - Control : An open - order file is maintained and reviewed regularly. - Test of control : For a sample of shipping/despatch documents , ensure each has been matched to a related sales invoice that was subsequently recorded. - Test of control : Review a sample of reconciliation performed. - Inspect the open-order file for unfilled orders. |
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Control objectives , controls , and test of controls for the sales accuracy assertion. |
Objective: to ensure that all sales and adjustments are correctly journalised, summarised and posted to the correct accounts. - Controls : sales invoices and matching documents required for all entries and the date and reference of the entry written on each document. - Test of controls: review supporting documents fir a sample of sales entries to ensure they contain the written details that indicate they were referred to when entered. |
