SondraStark_Unit6Assignment_Auditing410_02 - 1063 1...

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10-63 1.  Transactions over $10,000 must be approved by a credit manager for several reasons.  The most obvious reason is that this is quite a large transaction, and not just anyone  should be able to make a transaction this large.   If this control is not implemented  correctly, there could be a lot of large transactions that are no good, resulting in losses  for the company.  An auditor would want to do an inquiry to confirm and talk with  personnel who perform the control about the procedures and processes. 2. This could lead to misstatements as sales managers may or may not document what  they have approved, which could cause problems on financial statements.   In this case,  the auditor may want to observe the personnel performing the actions. 3. By pre numbering the shipping documents, there is room for error in what actually  happens.  Again, the auditor would want to do an inquiry to confirm and talk with 
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SondraStark_Unit6Assignment_Auditing410_02 - 1063 1...

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