Prepare a table similar to Exhibit 114 on (internal control objectives) for cashreceipts. EXHIBIT 11-4 Control Tests for Sales, Cash Receipts, and Receivables A. Sales

Prepare a table similar to Exhibit 11–4 on (internal control objectives) for cashreceipts.

EXHIBIT 11-4 Control Tests for Sales, Cash Receipts, and Receivables A. Sales 1. Select a sample of shipping documents: a. Scan for missing numbers b. Trace to related sales invoices. Completeness Completeness Completeness 2. Scan sales invoices for missing numbers in the sequence. 3. Select a sample of recorded sales invoices (sales journal) a. Perfomn recalculations to verity arithmetic accuracy b. Vouch to supporting shipping documents. Note dates and quantities. Accuracy Validity Proper period C. Vouch prices to approved price lists. d. Vouch credit approval. e. Trace posting to general ledger and proper customer account. Authorization Accounting 4. Observe customer order handling and invoice preparation work. B. Cash Receipts 1. Select a sample of recorded cash receipts (cash receipts joumal) a. Vouch to deposit slip and remittance ist. b. Trace to bank statement. C. Trace posting to general ledger accounts. d. Trace posting to subsidiary accounts. Validity Validity Accounting Accounting 2. Select a sample of rermittance lists (or daily cash reports) a. Trace to cash receipts journal b. Trace journal posting to general ledger C. Trace to bank statement. Completeness 3. Observe the work habits of cashiers and their interactions with persons Environment who keep cash records C. Accounts Receivable 1. Trace sales invoices to accounts receivable posting 2. Trace cash receipts to accounts receivable posting 3. Select a sample of credit memos: (procedure A-3-e above) procedure B-1-d above) a. Review for proper approval b. Trace to posting in customers' accounts. 4. Select a sample of customers' accounts: Validity Validity a. Vouch debits to supporting sales invoices. b. Vouch credits to supporting cash receipts documents and approved credit mermos 5. Observe mailing of monthly customer statements Validity