The following questions appeared on an internal control questionnaire for sales transactions. Beside each of internal...

 

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The following questions appeared on an internal control questionnaire for sales transactions. Beside each of internal control question indicate (i.e. write-in) the related management assertion for which the internal control would be most effective in preventing or detecting material misstatements. An assertion may be used more than once, or not used. Management Assertions 1. Occurrence or Existence 2. Rights and Obligations 3. Completeness 4. Cutoff 5. Accuracy or Valuation and Allocation 6. Classification A Are sales invoice blanks prenumbered? B Are all credit sales approved by the credit B department prior to shipment? c Are invoice quantities compared to shipped quantities? D Are summary journal entries approved before posting? B Are sales prices and terms based on approved standards? F Is access to sales invoice blanks restricted? G Does the accounting manual contain instructions to date sales invoices on the shipment date? Assertion A H Are returned sales credits supported by documentation? с D B F G H I Are prenumbered bills of lading prepared 1 in the shipping department? J Are periodic sales data reported directly 3 to general ledger accounting independent of accounts receivable accounting? The following questions appeared on an internal control questionnaire for sales transactions. Beside each of internal control question indicate (i.e. write-in) the related management assertion for which the internal control would be most effective in preventing or detecting material misstatements. An assertion may be used more than once, or not used. Management Assertions 1. Occurrence or Existence 2. Rights and Obligations 3. Completeness 4. Cutoff 5. Accuracy or Valuation and Allocation 6. Classification A Are sales invoice blanks prenumbered? B Are all credit sales approved by the credit B department prior to shipment? c Are invoice quantities compared to shipped quantities? D Are summary journal entries approved before posting? B Are sales prices and terms based on approved standards? F Is access to sales invoice blanks restricted? G Does the accounting manual contain instructions to date sales invoices on the shipment date? Assertion A H Are returned sales credits supported by documentation? с D B F G H I Are prenumbered bills of lading prepared 1 in the shipping department? J Are periodic sales data reported directly 3 to general ledger accounting independent of accounts receivable accounting?

Answer rating: 100% (QA)

A Are Sales invoice Blanks Prenumbered B Are All Credit Sales Approved by th... View the full answer