11.A clerk embezzles customer payments on account and covers up the theft by making an adjustment to
Question:
11.A clerk embezzles customer payments on account and covers up the theft by making an adjustment to the accounts receivable ledger. Describe a specific internal control procedure that would prevent this fraud.
12.A credit sale is made to a customer, even though the customers account is four months overdue. Describe a specific internal control procedure that would prevent this from happening.
13.What specific internal control procedure would prevent a customer from being billed for all 50 items ordered although only 40 items were shipped?
14.What specific internal control procedure would prevent the shipping clerk from taking goods from the storeroom and sending them to someone who had not placed an order?
15.What specific internal control procedure would prevent an accounts receivable clerk from issuing a fictitious credit memo to a customer (who is also a relative) for goods that were supposedly returned from previous sales?
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg