Cloud 9 - Continuing Case Sharon Gallagher and Josh Thomas have assessed the internal controls at Cloud 9 as being effective at an entity level. This means that, at a high level, the company demonstrates an environment where potential material misstatements are prevented or detected. Answer the following questions based on the information presented for Cloud 9 in the appendix to this text and the current and earlier chapters. You should also consider your answers to the case-study questions in earlier chapters.

Required You have been assigned the task of documenting the process for recording sales, trade receivables, and cash receipt transactions for wholesale customers. In your absence, Josh met with the Cloud 9 controller, Carla Johnson, and received permission to tape the interview, which is provided as a transcript (see the appendix to this text). Using this interview transcript and other information presented in the case, you are asked to:

• develop a flowchart, logic diagram, or narrative documenting your understanding of the revenue process for wholesale sales from making sales to recording sales invoices in the general ledger.
• Identify any follow-up questions you should ask the client if aspects of the process are not adequately explained. You could address such questions to Carla Johnson or any other employee you deem appropriate. The persons you identify should have responsibility for and sufficient knowledge of the process to give true, useful answers to your questions.
• For each assertion associated with recording wholesale revenue transactions, identify a control related to that assertion. If no controls are identified, recommend a control for the assertion.
• Draw an overall conclusion about internal controls related to the recording of wholesale revenue transactions.

Use the workpaper template provided to document your answer. If you develop a flowchart or logic diagram, use Word, Excel, or Visio.

Purpose To document our understanding of internal controls for revenue from wholesale sales. Source List sources of information described in the results section here. Scope/Methodology I interviewed Cloud 9 personnel, observed transaction processing, and reviewed the documents listed in the source section to obtain an understanding of internal controls for revenue from wholesale sales occurring during the year ended January 31, 2023. Conclusion Enter your overall conclusion here. Results Discuss results here. Include flowchart or logic diagram if used. Delete all instructions highlighted in yellow once you understand them. Instructions must be deleted before submitting to Canvas