Question: An inexperienced clerk assigned to the preparation of sales invoices
An inexperienced clerk assigned to the preparation of sales invoices in a manufacturing company became confused as to the nature of certain articles being shipped, with the result that the prices used on the invoices were far less than called for in the company's price lists. What controls could be established to guard against such errors?
Answer to relevant QuestionsComment on the following:”any voided prenumbered shipping documents should be properly canceled and disposed of to eliminate any possibility of improper shipment of goods”. Do the auditors question the service lives adopted by the client for plant assets, or do they accept the service lives without investigation? ExplainVendors’ statements and accounts payable confirmations are both forms of documentary evidence created outside the client organization and useful in audit work on accounts payable. Which of these two represents ...For which expense accounts should the auditors obtain or prepare analyses to be used in preparation of the client’s income tax returns?What are the two circumstances that result in modified opinions?
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