Question

A summary of the controls for the revenue and cash receipts cycle of Keystone Computers & Networks, Inc., appears on pages 479–492.
a. For the following three controls over sales, indicate one type of error or fraud that the control serves to prevent or detect. Organize your solution as follows:
Control ......................... Error or Fraud Controlled
1. Application controls are applied when customer
orders are entered by the sales order clerk.
2. The computer assigns numbers to sales invoices
when they are prepared.
3. Monthly statements are mailed to customers.

b. For the following three controls over cash receipts, indicate one type of error or fraud that the control serves to prevent or detect. Organize your solution as follows:
Control .......................... Error or Fraud Controlled
1. Cash receipts are prelisted by the receptionist.
2. The accounting manager reconciles control
totals generated by the accounts receivable
computer program.
3. The computer summaries of cash collections
and cash sales are reconciled to prelistings
of cash receipts and cash deposits by the
accounting manager.



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  • CreatedOctober 27, 2014
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