Question: Please do this question for me it's from my online exam and subject (auditing and assurance) PowerPoint Presen X 3 PowerPoint Preser X PowerPoint Presen

 Please do this question for me it's from my online exam

Please do this question for me it's from my online exam and subject (auditing and assurance)

and subject (auditing and assurance) PowerPoint Presen X 3 PowerPoint Preser X

PowerPoint Presen X 3 PowerPoint Preser X PowerPoint Presen X PowerPoint Presen X learn.jcu.edu.au/ultra/courses/_116751_1/outline/assessment/_5040238_1/overview/attempt/_8256735_1?courseld=_116751_1 Gmail YouTube Maps Use the editor to format your answer Question 3 8 Points Jackson Industries manufactures and wholesales small tools. It sells the tools to a large group of regular customers and makes most sales by telephone to this group. Additionally, it receives orders online by its sales team who sign up new customers within the sales area. In the past, Jackson Industries has had trouble with customers who do not pay their accounts on time. Despite instructing the sales team not to make sales to customers before their creditworthiness has been assessed, sales are still being made to the new customers before their limits have been set and to existing customers beyond their credit limit. Also, the economic recession has started to impact its customers, and Jackson's management is concerned about the possibility of increasing bad debts. Required: a) What sort of prevent control can be used to deal with problems faced by Jackson Industries? Explain how the control would work. b) If an auditor finds two sales transactions during the year that are in excess of a customer's credit limit at the time of the sale, what conclusion would the auditor draw from this evidence? What other evidence could the auditor consider before concluding that the prevent control has failed. Use the editor to format your answer Question 4 8 Points

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!