Key Controls Some of the key controls the company has are the following: Control 8a- A manager in the credit department performs a manual review of the sales order received based on credit score/history of past payments/financial strength/reputation/etc. and approves credit based on financial metrics of the customer. Each customer is given a distinct credit limit based on their assets/liabilities/ net income. The information used in the review is generated from AWS and publicly available databases. This control is performed multiple times a day or at least daily. Control 14a- The department also uses the approved sales order to record the receivable in an excel spreadsheet and uses this spreadsheet to keep track of account receivables afterwards (future payments by customer or additional credit issued), a new tab is created for new customers, and a summary tab is created. Receivables are aged and tracked in the aged trial balance report. This aged trial balance report is put together manually using information/reports out of the AWS system. This control is performed by accounting associates in the accounting department. This control is performed monthly. Control 14b- As receivables become outstanding for more than 6 months significant follow up procedures are performed such as (i) stopping all future sales to this customer, (ii) following up with the customer to arrange a payment plan, (iii) legal action to sue the customer, etc., (iv) any receivables outstanding more than 1 year and more than $1M is brought to the attention of the CEO/CFO. This control is performed manually by an accounting manager. This is performed at least once a month, but the report could be generated mid-month if any receivables meet the criteria. Control 12- The accounting department also prepares monthly bank reconciliations. This is performed automatically by AWS at the end of each month. If any material differences are found the accounting manager is notified for further action by the AWS system.

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IV. Controls Testing: STUDENT 4 (Name):_ Using Illustration: "Example of an Extent of testing table." (below). 14) Determine if the following controls are performed: (a) >5,000 instance; (b) Daily/Multiple times a day; (c) Weekly; (d) Monthly; (e)Quarterly; or (f) Annually? [Check only 1 box for each control, use your best judgement to answer the question based on the information above.] (Use the Check the box feature, and highlight your answer using the functionality in Microsoft word) Control 8a (a) >5,000 instance; (b) Daily/ Multiple times a day; (c) Weekly; (d) Monthly; (e)Quarterly; (f) Annually. Control 14a A) Reasonable Assurance from tests of controls B) More than limited Assurance (a) >5,000 instance; (b) Daily/ Multiple times a day; (c) Weekly; (d) Monthly; (e)Quarterly; (f) Annually. Control 14b A) Reasonable Assurance from tests of controls B) More than limited Assurance (a) >5,000 instance; (b) Daily/ Multiple times a day; (c) Weekly; (d) Monthly; (e)Quarterly; (f) Annually. Control 12 Control 14b A) Reasonable Assurance from tests of controls B) More than limited Assurance (a) >5,000 instance; 15) Use your answer to Q1 above to determine if you will seek: (a)Reasonable Assurance from tests of controls; (b) More than limited Assurance from Tests of Controls; or (c)"Limited Assurance from Tests of Controls. Look at facts above to determine the frequency of the following controls? [To answer this question think about how many controls exist over the cash/revenue area (1 or multiple) also think about what you selected for control risk above, and if controls appear to be working and if you answered you would test controls.] [EX: Control Risk High = Limited Assurance from Tests of Controls & Control Risk Low/Very Low = Reasonable Assurance from tests of controls.] [Check only 1 box for each control, use your best judgement to answer the question based on the information above.] (Use the Check the box feature, and highlight your answer using the functionality in Microsoft word) Control 8a Control 14a Control 12 A) Reasonable Assurance from tests of controls B) More than limited Assurance (b) Daily/ Multiple times a day; (c) Weekly; (d) Monthly; (e)Quarterly; (f) Annually. IV. Controls Testing: STUDENT 4 (Name):_ Using Illustration: "Example of an Extent of testing table." (below). 14) Determine if the following controls are performed: (a) >5,000 instance; (b) Daily/Multiple times a day; (c) Weekly; (d) Monthly; (e)Quarterly; or (f) Annually? [Check only 1 box for each control, use your best judgement to answer the question based on the information above.] (Use the Check the box feature, and highlight your answer using the functionality in Microsoft word) Control 8a (a) >5,000 instance; (b) Daily/ Multiple times a day; (c) Weekly; (d) Monthly; (e)Quarterly; (f) Annually. Control 14a A) Reasonable Assurance from tests of controls B) More than limited Assurance (a) >5,000 instance; (b) Daily/ Multiple times a day; (c) Weekly; (d) Monthly; (e)Quarterly; (f) Annually. Control 14b A) Reasonable Assurance from tests of controls B) More than limited Assurance (a) >5,000 instance; (b) Daily/ Multiple times a day; (c) Weekly; (d) Monthly; (e)Quarterly; (f) Annually. Control 12 Control 14b A) Reasonable Assurance from tests of controls B) More than limited Assurance (a) >5,000 instance; 15) Use your answer to Q1 above to determine if you will seek: (a)Reasonable Assurance from tests of controls; (b) More than limited Assurance from Tests of Controls; or (c)"Limited Assurance from Tests of Controls. Look at facts above to determine the frequency of the following controls? [To answer this question think about how many controls exist over the cash/revenue area (1 or multiple) also think about what you selected for control risk above, and if controls appear to be working and if you answered you would test controls.] [EX: Control Risk High = Limited Assurance from Tests of Controls & Control Risk Low/Very Low = Reasonable Assurance from tests of controls.] [Check only 1 box for each control, use your best judgement to answer the question based on the information above.] (Use the Check the box feature, and highlight your answer using the functionality in Microsoft word) Control 8a Control 14a Control 12 A) Reasonable Assurance from tests of controls B) More than limited Assurance (b) Daily/ Multiple times a day; (c) Weekly; (d) Monthly; (e)Quarterly; (f) Annually.

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Lets analyze the controls and answer the questions accordingly 1 Control 14b Frequency Monthly 2 Control 8a Frequency DailyMultiple times a day 3 Cont... View the full answer