Recommending Controls You will have the opportunity in this Discussion to recomm
ID: 2713073 • Letter: R
Question
Recommending Controls
You will have the opportunity in this Discussion to recommend sound internal controls over sales invoices and receivables. If controls are not in place over these functions, companies are susceptible to errors, fraud, and losses.
In the following scenarios, recommend internal controls that need to be in place to eliminate the problems described:
An inexperienced clerk does not have the knowledge to properly prepare sales invoices. He is confused about the actual items shipped. As a result, the clerk has been preparing invoices at prices that were below the company’s sales prices.
During your audit, the controller approaches you about a problem with missing invoices. He thinks that these missing invoices were never recorded in the system, which results in the accompanying receivables not being recorded either. He reads the monthly sales data and calculates that the company has faced significant losses as a result
Explanation / Answer
The invoices and all the records must not be manual, instead must be in an IT system connected to database.
For eg if a new entry is been made in the system, the numbers must be automstically cimpared to last years data and uf a abnormal vsriation i.e more than 50% variation is found then the system must send an alert message.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.