A sales representative of QQ Equipment has put up a sales order. The sales order was...
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A sales representative of QQ Equipment has put up a sales order. The sales order was then copied to the warehouse where the ordered items were packed and shipped to the customer. Upon the completion of the shipment, the shipping document that was verified by the customer was returned to the warehouse. The warehouse supervisor inadvertently destroyed the packing slip and shipping document. Without these documents, the Billing Department was not aware of the shipment and thus, did not bill the customer. Although the sales order was submitted to the Billing Department by the sales office, due to the missing packing slip and shipping document, the sales order was considered as cancelled. The customer and the warehouse supervisor were good friends. Untitled title 1a. Identify the internal control weakness that enable the fraudulent behaviour. * Your answer 1b. Determine the internal control procedure that would prevent the fraud * Your answer A sales representative of QQ Equipment has put up a sales order. The sales order was then copied to the warehouse where the ordered items were packed and shipped to the customer. Upon the completion of the shipment, the shipping document that was verified by the customer was returned to the warehouse. The warehouse supervisor inadvertently destroyed the packing slip and shipping document. Without these documents, the Billing Department was not aware of the shipment and thus, did not bill the customer. Although the sales order was submitted to the Billing Department by the sales office, due to the missing packing slip and shipping document, the sales order was considered as cancelled. The customer and the warehouse supervisor were good friends. Untitled title 1a. Identify the internal control weakness that enable the fraudulent behaviour. * Your answer 1b. Determine the internal control procedure that would prevent the fraud * Your answer
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Answer rating: 100% (QA)
1a The internal control weakness that enabled the fraudulent behavior was the lack of documenta... View the full answer
Related Book For
Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton
Posted Date:
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