You are conducting an audit of sales for the James Department Store, a retail chain store with a computer-based sales system in which computer-based cash registers are integrated directly with accounts receivable, sales, perpetual inventory records, and sales commission expense. At the time of sale the salesclerk’s key-enter the following information directly into the cash register:
Product number
Quantity sold
Unit selling price
Store code number
Salesclerk number
Date of sale
Cash sale or credit sale
Customer account number for all credit sales
The total amount of the sale, including sales tax, is automatically computed by the system and indicated on the cash register's visual display. The only printed information for cash sales is the cash register receipt, which is given to the customer. For credit sales, a credit slip is prepared and one copy is retained by the clerk and submitted daily to the accounting department.
A summary of sales is printed out daily in the accounting department. The summary includes daily and monthly totals by salesclerks for each store as well as totals for each of 93 categories of merchandise by store. Perpetual inventory and accounts receivable records are updated daily on magnetic tape, but supporting records are limited primarily to machine-readable records.

Required
a. What major problems does the auditor face in verifying sales and accounts receivable?
b. How can the concept of test data be used in the audit? Explain the difficulties the auditor will have to overcome in using test data.
c. How can generalized audit software be used in this audit? List several tests that can be conducted by using this approach.
d. The client would also like to reduce the time it takes to key-enter the information into the cash register. Suggest several ways in which this can be accomplished, considering the information now being key-entered manually.