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a. Control C. If the amount recorded to the customer account is incorrect, whether because the amounts were recorded to the wrong customer account in error or because customers' checks were stolen, mailing a monthly statement to customers with outstanding balances will help control this error or fraud because the customer is likely to let the creditor know that the amount they are reported as owing is incorrect, especially if the statement says they owe more than what they actually owe.
b. Control G. If employees were required to compare documents required to ship the goods with the documents required to bill the customer, then the employees would not ship the goods to the customers without billing them because they would notice no …show more content…
Control K. If employees were required to compare the amounts recorded in the accounts receivable ledger with the total amounts from the invoices, they would be able to see if one or more of the invoices had been missed when recording the amounts to accounts receivable.
e. Control I. If employees were required to compare orders from customers with a list of approved customers, employees would not make credit sales to customers with poor credit because those customers' names would not appear on the list of approved customers.
f. Control B. If approved sales orders were required for goods to be released from the warehouse, then employees would not be able to take inventory for unauthorized orders.
g. Control D. If shipping clerks were required to compare the goods received from the warehouse with the sales orders from the customers, then the goods shipped to the customers are more likely to be what the customer actually ordered.
h. Control L. If employees were required to compare sales invoices with shipping documents before sending sales invoices, then they would be more likely to recognize sales invoices that contained fraudulent information because there would be no shipping documents for the fictitious sales. This, in turn, would allow the employees checking the sales invoices to catch any fictitious sales that had been
a. Control C. If the amount recorded to the customer account is incorrect, whether because the amounts were recorded to the wrong customer account in error or because customers' checks were stolen, mailing a monthly statement to customers with outstanding balances will help control this error or fraud because the customer is likely to let the creditor know that the amount they are reported as owing is incorrect, especially if the statement says they owe more than what they actually owe.
b. Control G. If employees were required to compare documents required to ship the goods with the documents required to bill the customer, then the employees would not ship the goods to the customers without billing them because they would notice no …show more content…
Control K. If employees were required to compare the amounts recorded in the accounts receivable ledger with the total amounts from the invoices, they would be able to see if one or more of the invoices had been missed when recording the amounts to accounts receivable.
e. Control I. If employees were required to compare orders from customers with a list of approved customers, employees would not make credit sales to customers with poor credit because those customers' names would not appear on the list of approved customers.
f. Control B. If approved sales orders were required for goods to be released from the warehouse, then employees would not be able to take inventory for unauthorized orders.
g. Control D. If shipping clerks were required to compare the goods received from the warehouse with the sales orders from the customers, then the goods shipped to the customers are more likely to be what the customer actually ordered.
h. Control L. If employees were required to compare sales invoices with shipping documents before sending sales invoices, then they would be more likely to recognize sales invoices that contained fraudulent information because there would be no shipping documents for the fictitious sales. This, in turn, would allow the employees checking the sales invoices to catch any fictitious sales that had been