H l a comparison of sales invoices with shipping

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h. L. A comparison of sales invoices with shipping documents and approved sales orders will detect invoices that do not have the proper support. Accordingly, it will help prevent the recording of fictitious transactions.
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i. P. Comparing amounts posted to the accounts receivable ledger with the validated bank deposit will detect improper postings to accounts receivable since any differences in amounts will be investigated. j. C. Misappropriations of customers’ checks will be detected when customers indicate that they have made payments for items shown as payable on their monthly statement. Note that replies O and P will only detect this misappropriation in the unlikely event that the perpetrator does not dispose of the remittance advice. k. C. Mispostings of payments made will be detected when customers indicate that they have made payments for items shown as payable on their monthly statement. l. P. Crediting more than one account for a cash receipt will be detected when the total of amounts posted to the accounts receivable ledger is compared with the validated bank deposit slip. m. S. An independent reconciliation of the bank account will reveal improper total recording of receipts in the cash receipts journal because unallocated differences between bank and book balances will occur and be investigated. n. P. Comparing total amounts posted to the accounts receivable ledger with the validated bank deposit slip will detect a difference between total cash receipts and the amount credited to the accounts receivable ledger. o. N. Requiring the approval of the supervisor of the sales department for goods received will provide assurance that invalid transactions granting credit for sales returns are not recorded. Using prenumbered credit memos (reply M) will only be effective if the sequence is accounted for and if credit memos may be compared in some form to actual returns.
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  • Winter '08
  • nancy
  • Revenue, invoice, sales department, receivable ledger

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