Case study You have completed the analysis of the customer-sales cycle procedures. It revealed the following:...
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Case study You have completed the analysis of the customer-sales cycle procedures. It revealed the following: - When a client sends a purchase request to the firm, the purchase department systematically ask for an authorization from the CFO. - When the products are delivered to customers, a shipping document is issued in two copies by the purchase manager. One is sent to the account receivable associate (an employee of the accounting department), the second is delivered to the customer - The account receivable associate prepares the invoice based on the purchase request sent by the client and record this invoice on the accounting books after the authorization of the accountant. - Checks are received directly by the Account receivable associate, he records this payment and deposits checks in the bank. - The unpaid invoices are subject to a telephone call back, depending on the availability of the AR associate - The accounting department is not systematically informed about returned products, nor about other disputes with customers Questions: 1/ Analyze the weaknesses of the customer-sales cycle internal control system (use the model of the table below) Weaknesses Risk related 1. 2/ What is the adequate audit strategy for the sales cycle? Justify your answer. Case study You have completed the analysis of the customer-sales cycle procedures. It revealed the following: - When a client sends a purchase request to the firm, the purchase department systematically ask for an authorization from the CFO. - When the products are delivered to customers, a shipping document is issued in two copies by the purchase manager. One is sent to the account receivable associate (an employee of the accounting department), the second is delivered to the customer - The account receivable associate prepares the invoice based on the purchase request sent by the client and record this invoice on the accounting books after the authorization of the accountant. - Checks are received directly by the Account receivable associate, he records this payment and deposits checks in the bank. - The unpaid invoices are subject to a telephone call back, depending on the availability of the AR associate - The accounting department is not systematically informed about returned products, nor about other disputes with customers Questions: 1/ Analyze the weaknesses of the customer-sales cycle internal control system (use the model of the table below) Weaknesses Risk related 1. 2/ What is the adequate audit strategy for the sales cycle? Justify your answer.
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Related Book For
Discrete Mathematics and Its Applications
ISBN: 978-0073383095
7th edition
Authors: Kenneth H. Rosen
Posted Date:
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