Question:

Listed below are internal control procedures that a company might carry out within its internal control system for accounts receivable.

1. A daily total is computed for sales invoices and then compared to the total amount recorded from the Sales Journal into Sales Summary.
2. Overdue accounts are billed promptly, and any customer complaints are followed up immediately.
3. All credit sales must be approved in advance by comparison to an approved customer list.
4. All received documents are pre-numbered and compared to purchase invoices before the voucher is approved.
5. Goods received by the shipping department from the warehouse should be reconciled to an approved copy of the sales order.
6. The sales invoice must be compared to a master price list before being mailed.
7. A periodic review is made of any sales order or shipping documents that have not been processed by the billing department.
8. All sales invoices must be reviewed and authorized by a second party who reconciles the amount to the sales order and the shipping document.
9. The total amount posted to individual customer accounts is compared to the total amount of sales invoices.

In performing the audit of Jupiter Inc., the audit team from Sampson and Delilah discovered each of the following internal control problems. For each of these problems identity, one of the listed control procedures could have been utilized to either prevent or detect errors and fraud. Each problem can only be matched with one procedure, but a procedure may be used more than once.

	Sales are made to a buyer who are not good credit risks
	Goods are shipped to customers but later prove to be the incorrect quantity
	Invoices are properly prepared and mailed to the correct customers but posted to the accounts of different customers
	Goods are shipped to customers based on sales orders, but no record is ever made of the sales and no invoice is ever sent to the customer
	Sales invoices are prepared and mailed but not recorded in the sales journal
	Goods are shipped to customers without ever having received a sales order
	To boost net income, sales invoices are prepared and mailed to fake addresses for sales that never occurred.