Sarah works in a clothing boutique whose return policy requires a manager to authorize any returns or exchanges. While auditing the boutique you interview Sarah and learn that the weekend manager has given Sarah and several other employees the authorization code to process returns and exchanges so the register does not get backed up when the store gets busy. As the auditor, would you continue to test this control during your audit? What recommendations would you make to improve this control?
Answer to relevant QuestionsFor each of the following (a-c) determine which audit objective is being met by the following control. In addition, list a test that an auditor would do to provide assurance that the control was effective.a. All sales orders ...Nile.com is an online retailer of electronics, music, books, DVDs, and a variety of other consumer goods. All sales are made on the basis of FOB Destination Prepaid; the shipping costs are paid by the customer. During the ...You are conducting an audit of the financial statements of Medical Complex Rentals, Inc. for the year ending March 31, 2010.You are assigned to examine the annual rent reconciliation (below) prepared by the controller of the ...What transaction is captured by a Contractual Discount account? What type of account is a Contractual Discount account?What is lapping?
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