n - 14-21(Objectives 14-3 14-4 14-5 14-6 The following questions deal with internal controls in the sales and collection cycle Choose the best response

n - 14-21(Objectives 14-3 14-4 14-5 14-6 The following...

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14-21 (Objectives 14-3, 14-4, 14-5, 14-6)The following questions deal with internal controls in the sales and collection cycle. Choose the best response.a.The accounting system will not post a sales transaction to the sales journal without a valid bill of lading number. This control is most relevant to which transaction-related objective for sales? (1)Accuracy(2)Occurrence(3)Completeness(4)Posting and summarization b.The accounting system automatically obtains the unit price based on scansof bar codes for merchandise sold. This control is most relevant to which transaction-related objective for sales? c.Which of the following controls would be most effective in detecting a failure to record cash received from customers paying on their accounts? 1
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14-22 (Objectives 14-3, 14-4)For each of the following types of misstatements (partsa through d), select the control that should have prevented the misstatement:a.A manufacturing company received a substantial sales return in the last month of the year, but the credit memorandum for the return was not prepared until after the auditors had completed their testing. The returned merchandise was included in the physical inventory.(1)Aged trial balance of accounts receivable is prepared.(2)Credit memoranda are prenumbered and all numbers are accounted for.(3)A reconciliation of the trial balance of customers’ accounts with the general ledger control is prepared periodically.(4)Receiving reports are prepared for all materials received and such reports are accounted for on a timely basis.b.Which of the following controls most likely will be effective in offsetting the tendency of sales personnel to maximize sales volume at the expense of high bad debt write-offs?
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