Audit unit 5 discussion.docx - Hello class and Professor An inexperienced clerk does not have the knowledge to properly prepare sales invoices He is

Audit unit 5 discussion.docx - Hello class and Professor An...

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Hello class and Professor, 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. No one person should be in charge of creating sales invoices. There needs to be a second set of eyes to double check that the work has been done correctly. The company also needs to institute a proper training program. One that trains a person on all tasks they will encounter as it appears in this situation that the concept of sales invoices may have been brought up but definitely not trained. The company might also consider buying an invoice software. This way all of the information can be entered a head of time and you only have to point and click to create invoices 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
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Unformatted text preview: 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. In this situation, you have to first determine if the invoices were never created or missed in error or there is even the possibility of the invoices being intentionally not done. Each option would provide its own set of controls. If the invoices were intentionally missed than the responsibilities of those in charge must be reviewed. They might need to bring in more help in order to stop it from happening again. Now if it were done unintentionally processes must be reviewed. One way to protect yourself is to ensure at least two people can verify that an invoice has been created. Another tool could be an IT system that helps log the daily activities/merchandise of the company. This way you have the capacity to track everything digitally making it somewhat tougher to manipulate. Kim...
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