Question: DISCUSSION QUESTIONS AND PROBLEMS question whereas a no indicates a potential deficiency. ot type generally found in internal control questionnaires used by auditors to obtain

DISCUSSION QUESTIONS AND PROBLEMS question whereas a "no indicates a potential deficiency. ot type generally found in internal control questionnaires used by auditors to obtain an 14-23 (OBJECTIVES 14-2, 14-3, 144, 14-5) Items 1 through 9 are selected questions of the naire for a client, a "yes" response to a question indicates a possible internal control, understanding of internal control in the sales and collection cycle. In using the 2. Is the bill of lading information forwarded in a timely fashion to accounting to ensure 1. Are customer orders evaluated for credit approval by someone independent of sales 3. Is the numerical sequence of bills of ladings accounted for to identify duplicates 5. Are unit prices obtained from a preapproved and restricted master file of unit prices! 7. Are entries in the sales journal restricted to those that are supported by a valid bill of 8. Are entries in the sales journal timely recorded in the accounts receivable master file? 9. Are individuals responsible for handling cash collections independent of accounting and shipping functions? a. For each of the preceding questions, state the transaction-related audit objectives be ing fulfilled if the control is in effect. b. For each control, list a test of control to test its effectiveness. c. For each of the preceding questions, identify the nature of the potential financial misstatements. recording in the sales journal? missing documents? 4. Are online sales automatically recorded in the sales system? 6. Are sales invoice amounts independently verified for correctness? -quired d. For each of the potential misstatements in partc., list a substantive audit procedure te a . tarde require the auditor to obtain

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