Apollo Internal Controls Questionnaire

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Date Submitted: 09/13/2012 09:28 AM

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Internal Control Questionnaire—Sales Transaction Processing

Assertions and Questions Yes, No, N/A

Comments

Occurrence assertion:

1. Is the credit department independent of the sales department? Yes Credit department is in the treasurer’s department.

2. Are sales of the following types controlled by the same procedures described below? Sales to employees, COD sales, disposals of property, cash sales, and scrap sales. N/A

3. Is access to sales invoice blanks restricted? Yes They are kept locked in a closet in the billing dept.

4. Are pre-numbered bills of lading or other shipping documents prepared or completed in the shipping department? Yes Two copies are filled out, one is sent with the order, the other is attached to invoice and sent to accounts receivable.

Completeness assertion:

5. Are sales invoice blanks pre-numbered? Yes The invoice blanks are pre-numbered.

6. Is the sequence checked for missing invoices? Yes They are checked and missing invoices must be located and explained.

7. Is the shipping document numerical sequence checked for missing bills of lading numbers? Not mentioned

Accuracy assertion:

8. Are all credit sales approved by the credit department prior to shipment? Yes Credit is approved or payment is made before sales order gets invoiced.

9. Are sales prices and terms based on approved standards? Yes There is an approved price list

10. Are returned sales credits and other credits supported by documentation as to receipt, condition, and quantity, and approved by a responsible officer? Not mentioned

11. Are shipped quantities compared to invoice quantities? Yes They are compared to invoice copies 3 and 4 for correct quantities.

12. Are sales invoices checked for error in quantities, prices, extensions and footing, and freight allowances, and checked with customers’ orders? Yes They are checked by the accounts receivable clerk

13. Is there an overall check on arithmetic...