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Unformatted text preview: 11-63 (Testing Controls)Requireda.For each control indentified, briefly indicate the financial misstatement that could occur if the control is not implemented effectively.b.Identify an audit procedure to test for effectiveness of the control.Controls Typically Found in Sales Processes1.Authorization: All transactions under $10,000 may be approved by a computer authorization program. The credit manager must approve all transactions over $10,000.2.All invoices are priced according to the authorized price list maintained on the computer. Either the regional or divisional sales manager must approve any exceptions.3.All shipping documents are pre-numbered and periodically accounted for. Shipping document references are noted on all sales invoices.4.Customer complaints regarding receipt of goods are routed to a customer service representative. Any discrepancies are immediately followed up to determine the cause of the discrepancy....
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This note was uploaded on 04/05/2010 for the course KU 1234567 taught by Professor Mims during the Spring '10 term at Kaplan University.
- Spring '10