e. A nonexistent part number was included in the description of goods on a shipping document. Fortunately, the individual packing the item for shipment was able to identify the product by its description and included it in the order. The item was not billed, however, because it was not correctly identified in the system.

f. A customer account number was transposed during the order-taking process. Consequently, the shipment was billed to another customer. By the time the error was identified, the original customer decided to take its business elsewhere.

g. An accounts receivable clerk with access to entering cash remittances misappropriated the cash remittances and recorded the credit to the customer's account as a discount.

h. An employee consistently misstated his time card by returning at night and punching out then, rather than when his shift was over at 3:30. Instead of being paid for 40 hours per week, he was paid, on average, for over 60 hours per week for almost one year. When accused of the error, he denied any wrongdoing and quit.

A. Identify a control procedure that would have been effective in either preventing or detecting the error, B. Should the auditor expand the testing of controls? If yes, how should the tests be expanded? C. What is the impact on auditing account balances? Errors Found