The following are internal controls that theauditor has identified for various cycles.1. Sales invoices are matched with shipping documents and customer orders beforerecording in the sales journal.2. Receiving reports are prenumbered and accounted for on a daily basis.3. Sales invoices are independently verified before being sent to customers.4. Payments by check are received in the mail by the receptionist, who lists the checksand restrictively endorses them.5. Overtime hours for payroll are approved by the employee’s supervisor.6. Checks are signed by the company president, who compares the checks with theunderlying supporting documents.7. Unmatched shipping documents are accounted for on a daily basis.8. All payroll payments must have a valid employee identification number assigned bythe human resources department at the time of hiring.9. The accounts receivable master is reconciled to the general ledger on a monthly basis.a. For each internal control, identify the type(s) of specific control activity (or activities) towhich it applies (such as proper authorization and adequate documents and records).b. For each internal control, identify the transaction-related audit objective(s) to whichit applies.
The following are internal controls that theauditor has identified for various cycles.1. Sales invoices are matched with shipping documents and customer orders beforerecording in the sales journal.2. Receiving reports are prenumbered and accounted for on a daily basis.3. Sales invoices are independently verified before being sent to customers.4. Payments by check are received in the mail by the receptionist, who lists the checksand restrictively endorses them.5. Overtime hours for payroll are approved by the employee’s supervisor.6. Checks are signed by the company president, who compares the checks with theunderlying supporting documents.7. Unmatched shipping documents are accounted for on a daily basis.8. All payroll payments must have a valid employee identification number assigned bythe human resources department at the time of hiring.9. The accounts receivable master is reconciled to the general ledger on a monthly basis.a. For each internal control, identify the type(s) of specific control activity (or activities) towhich it applies (such as proper authorization and adequate documents and records).b. For each internal control, identify the transaction-related audit objective(s) to whichit applies.
The following are internal controls that theauditor has identified for various cycles.1. Sales invoices are matched with shipping documents and customer orders beforerecording in the sales journal.2. Receiving reports are prenumbered and accounted for on a daily basis.3. Sales invoices are independently verified before being sent to customers.4. Payments by check are received in the mail by the receptionist, who lists the checksand restrictively endorses them.5. Overtime hours for payroll are approved by the employee’s supervisor.6. Checks are signed by the company president, who compares the checks with theunderlying supporting documents.7. Unmatched shipping documents are accounted for on a daily basis.8. All payroll payments must have a valid employee identification number assigned bythe human resources department at the time of hiring.9. The accounts receivable master is reconciled to the general ledger on a monthly basis.a. For each internal control, identify the type(s) of specific control activity (or activities) towhich it applies (such as proper authorization and adequate documents and records).b. For each internal control, identify the transaction-related audit objective(s) to whichit applies.
The following are internal controls that the auditor has identified for various cycles. 1. Sales invoices are matched with shipping documents and customer orders before recording in the sales journal. 2. Receiving reports are prenumbered and accounted for on a daily basis. 3. Sales invoices are independently verified before being sent to customers. 4. Payments by check are received in the mail by the receptionist, who lists the checks and restrictively endorses them. 5. Overtime hours for payroll are approved by the employee’s supervisor. 6. Checks are signed by the company president, who compares the checks with the underlying supporting documents. 7. Unmatched shipping documents are accounted for on a daily basis. 8. All payroll payments must have a valid employee identification number assigned by the human resources department at the time of hiring. 9. The accounts receivable master is reconciled to the general ledger on a monthly basis. a. For each internal control, identify the type(s) of specific control activity (or activities) to which it applies (such as proper authorization and adequate documents and records). b. For each internal control, identify the transaction-related audit objective(s) to which it applies.
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
