This exercise asks you to specify control test objectives and define deviations in connection with planning the test of controls audit of Kingston Company’s internal controls.

Required:
a. For each control cited below, state the objective of an auditor’s test of controls audit procedure.
b. For each control cited below, state the definition of a deviation from the control.
1. The credit department supervisor reviews each customer’s order and approves credit by making a notation on the order.
2. The billing department must receive written notice from the shipping department of actual shipment to a customer before a sale is recorded. The sales record date is supposed to be the shipment date.
3. Billing clerks carefully look up the correct catalogue list prices for goods shipped and recheck the amounts billed on invoices for the quantities of goods shipped.
4. Billing clerks review invoices for intercompany sales and mark each one with the code “9,” so that they will be posted to intercompany sales accounts.