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Unformatted text preview: shipping department receives a marked up sales order from the warehouse with the quantities picked recorded on the sales order. Quantities on the sales order are recounted and compared to the physical count however, the shipping clerk does not match goods received to the item descriptions, making the control less effective. The shipping department needs to have a formal shipping document and make sure the shipping clerk also matches item descriptions, not only quantities. Accounts Receivable has the weakest control. The A/R system does not match quantities to the shipping report nor per item price to the sales order. Accounts Receivable aging report is prepared but its unclear how often. To correct this weakness, NADCo should alter the A/R system, insuring that it will match quantities to the shipping report and per item price to the sales order....
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- Spring '10
- Revenue, invoice, Cash register, Sales order, NADCo