The following misstatements or omissions are included in the accounting records of Joyce Manufacturing Company Pty Ltd:
1. A sales invoice totalled was overstated by $1000 because of a key-entry mistake.
2. A material sale was unintentionally recorded for the second time on the last day of the year. The sale had originally been recorded two days earlier.
3. Cash received from debtors was stolen by the mail clerk when the mail was opened.
4. Cash received from debtors that had been prelisted by a secretary was stolen by the accounts clerk who records cash receipts and accounts receivable. The clerk failed to record the transactions.
5. A shipment to a customer wasn't billed because of the loss of the shipping document.
6. Inventory was shipped to a customer, but no bill of lading was prepared. As billings are prepared from bills of lading, the customer wasn't billed.
7. A sale of surplus spare parts was unintentionally classified as a commercial sale.
8. Sales generated through the company's website are recorded at the point the customers submit the orders online.
REQUIRED
a. Identify whether each misstatement is an error or a fraud.
b. For each error, state a control that should have prevented it from occurring on a continuing basis.
c. For each error, state a substantive audit procedure that could uncover it.