For each of the following internal controls, indicate the type of control activity and therelevant transaction-related assertion
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For each of the following internal controls, indicate the type of control activity and therelevant transaction-related assertion (audit objective).
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Control Activity Internal Control Transaction-related assertion 1. Sales invoices are matched with shipping documents by the computer system and an exception report is generated. 2. Receiving reports are prenumbered and accounted for on a daily basis. 3. Sales invoices are independently verified before being sent to customers. 4. Payments by cheque are received in the mail by the receptionist, who lists the cheques and restrictively endorses them. 5. Labour hours for payroll are reviewed for reasonableness by the computer system. 6. Cheques are signed by the company presi- dent, who compares the cheques with the underlying supporting documents. 7. Unmatched shipping documents are accounted for on a daily basis. 8. The computer system verifies that all payroll payments have a valid employee identification number assigned by the human resources department at the time of hiring. 9. The accounts receivable master file is reconciled to the general ledger on a monthly basis.
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Related Book For
Auditing The Art and Science of Assurance Engagements
ISBN: 978-0134613116
14th Canadian edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones
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