You have carried out a study of the procedures of the customer-sales cycle. It has revealed the following elements:

• When products are delivered to customers, two copies of a delivery note are made out. One is filed in the shipping department, the second is given to the customer;
• Unpaid invoices are followed up by telephone on an ad hoc basis, depending on the availability of time in the accounts receivable department;
• The accounting department is not systematically informed of returned products or other disputes with customers.

1. Write a summary note specifying the internal control weaknesses relating to the customer-sales sales cycle, the risks they pose, and the recommendations you make.
2. What communication should the auditor make?

Answer rating: 100% (QA)

Internal Control Weaknesses Recommendations Auditors communication a no proof of the delivery could ... View the full answer