Recommending controls

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Recommending Controls

You will have the opportunity in this Discussion to recommend sound internal controls over sales invoices and receivables. If controls are not in place over these functions, companies are susceptible to errors, fraud, and losses.

In the following scenarios, recommend internal controls that need to be in place to eliminate the problems described:

An inexperienced clerk does not have the knowledge to properly prepare sales invoices. He is confused about the actual items shipped. As a result, the clerk has been preparing invoices at prices that were below the company’s sales prices.

During your audit, the controller approaches you about a problem with missing invoices. He thinks that these missing invoices were never recorded in the system, which results in the accompanying receivables not being recorded either. He reads the monthly sales data and calculates that the company has faced significant losses as a result

Reference no: EM13919648

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