1. For each of the following potential errors, identify a control procedure that
ID: 2505191 • Letter: 1
Question
1. For each of the following potential errors, identify a control procedure that would most likely be effective in preventing or detecting the problem; select the appropriate control procedures from the listed provided (A through L). Control procedures may be selected once, more than once, or not at all.
1. Credit sales are made to individuals with unsatisfactory credit ratings.
2. Employees receive unauthorized rate increases.
3. Vendor invoices are paid for more goods than were received.
4. Fictitious employees are added to payroll.
5. Sales invoices for goods are posted to incorrect customer accounts.
6. Goods shipped to customers do not agree with goods ordered by customers.
7. Customer checks are misappropriated before being forwarded to the cashier for deposit.
8. The receiving clerk fails to count the goods received.
9. Customer checks are received for less than the customer
1. Credit sales are made to individuals with unsatisfactory credit ratings.
2. Employees receive unauthorized rate increases.
3. Vendor invoices are paid for more goods than were received.
4. Fictitious employees are added to payroll.
5. Sales invoices for goods are posted to incorrect customer accounts.
6. Goods shipped to customers do not agree with goods ordered by customers.
7. Customer checks are misappropriated before being forwarded to the cashier for deposit.
8. The receiving clerk fails to count the goods received.
9. Customer checks are received for less than the customer
Explanation / Answer
1. Credit sales are made to individuals with unsatisfactory credit ratings.
2. Employees receive unauthorized rate increases.
3. Vendor invoices are paid for more goods than were received.
4. Fictitious employees are added to payroll.
5. Sales invoices for goods are posted to incorrect customer accounts.
6. Goods shipped to customers do not agree with goods ordered by customers.
7. Customer checks are misappropriated before being forwarded to the cashier for deposit.
8. The receiving clerk fails to count the goods received.
9. Customer checks are received for less than the customer
1. Credit sales are made to individuals with unsatisfactory credit ratings.
D2. Employees receive unauthorized rate increases.
G3. Vendor invoices are paid for more goods than were received.
I4. Fictitious employees are added to payroll.
E5. Sales invoices for goods are posted to incorrect customer accounts.
B6. Goods shipped to customers do not agree with goods ordered by customers.
C7. Customer checks are misappropriated before being forwarded to the cashier for deposit.
J8. The receiving clerk fails to count the goods received.
K9. Customer checks are received for less than the customer
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