A10 Twatt - Chapter 10 Tiffany Watt Assignment: A10...

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Chapter 10 Tiffany Watt Assignment: A10 December 2, 2011 AC 405 – E01 10-32. You are assigned by your senior to conduct inquiries of the shipping process. Prepare a list of questions that will provide you with an understanding of the controls that are in place. In addition, what documentation would you ask management for? A list of questions include: How is the billing department notified of a recent shipment? How is the billing process initiated? At what stage in the process are the products actually shipped to the buyer? What are the kinds of documentation used throughout the process? The documentation I would ask management for would be the sales invoice, order forms, and bills of lading. 10-33. Using the assertions provided below, select the management assertion(s) that relates to the purpose of the controls in the table. (A management assertion may be selected once, more than once, or not at all.) Purpose of Control Management Assertion To ensure that credit is approved before a sale is executed and service is provided or goods are shipped Authorization To ensure that transactions shown as sales are properly classified Presentation and disclosure To ensure that when cash receipts are recorded they show cash that was actually received by the company and deposited Valuation or allocation Presentation and disclosure To ensure that cash receipts transactions are properly posted to the accounts receivable subsidiary ledger and general ledger Rights and Obligations Valuation or allocation
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This note was uploaded on 02/02/2012 for the course BUSINESS 101 taught by Professor - during the Spring '11 term at Mississippi Valley State University.

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A10 Twatt - Chapter 10 Tiffany Watt Assignment: A10...

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