The following are errors or fraud and other irregu.
1. The incorrect price was used on sales invoices for billing larities that have occurred in Fresh Foods Grocery Store Ltd., shipments to customers because the incorrect price was a wholesale and retail grocery company. Entered into a computer file.
2. A vendor’s invoice was paid twice for the same shipment. The second payment arose because the vendor sent a duplicate copy of the original two weeks after the payment was due.
3. Employees in the receiving department stole some sides of beef. When a shipment of meat was received, the receiving department filled out a receiving report and forwarded it to the accounting department for the amount of goods actually received. At that time, two sides of beef were put in an employee’s pickup truck rather than in the storage freezer.
4. During the physical count of inventory of the retail grocery, one counter wrote down the wrong description of several products and miscounted the quantity.
5. A salesperson sold several hundred kilos of lamb at a price below cost because she did not know that the cost of lamb had increased in the past week.
6. On the last day of the year, a truckload of beef was set aside for shipment but was not shipped. Because it was still on hand, it was counted as inventory. The shipping document was dated the last day of the year, so it was also included as a current-year sale.
REQUIRED
a. For each error or fraud and other irregularity, identify one or more types of controls that were absent.
b. For each error or fraud and other irregularity, identify the objectives that have not been met.
c. For each error or fraud and other irregularity, suggest a control to correct the deficiency.