Reference no: EM132504979

The following are misstatements that can occur in the sales and collection? cycle:

1. A customer number on a sales invoice was transposed? and, as a? result, charged to the wrong customer. By the time the error was? found, the original customer was no longer in business.
2. A former computer? operator, who is now a? programmer, entered information for a fictitious sales return and ran it through the computer system at night. When the money came? in, he took it and deposited it in his own account.
3. A nonexistent part number was included in the description of goods on a shipping document.? Therefore, no charge was made for those goods.
4. A customer order was filled and shipped to a former? customer, that had already filed for bankruptcy.
5. The sales manager approved the price of goods ordered by a? customer, but he wrote down the wrong price.
6. A computer operator picked up a? computer-based data file for sales of the wrong week and processed them through the system a second time.
7. For a? sale, a data entry operator erroneously failed to enter the information for the? salesman's department. As a? result, the salesman received no commission for that sale.
8. Several remittance advices were batched together for inputting. The cash receipts clerk stopped for? coffee, set them on a? box, and failed to deliver them to the data input personnel.

Requirements

Question a. Identify the? transaction-related management? assertion(s) to which the misstatement pertains.

Question b. Identify one automated control that would have likely prevented each misstatement.