Question

Accounts Receivable

Sales

A/R Posting

Extended Sales Invoice

Packing Slip

Compare invoice to packing slip 2 (C, A) Driver obtains signature on sales invoice (V, A) Matching control copy to signed copy of Sales Order (C, V, A) Check Extended Sales Invoice (A)

Compare invoice to packing slip 2 (C, A) Compare invoice to packing slip 1 (C, A) Driver obtains signature on sales invoice (V, A) Matching to authorized list (A)

Compare A/R batch totals (C, V, A) Compare Sales Register to Accounts Receivable Cards (C, V, A)

Sales Invoice

Compare invoice to packing slip 1 (C, A) Driver obtains signature on sales invoice (V, A)

Key: Solid boxes are processes Dashed boxes contain controls associated with processes Letters after controls are the assertions they cover. Numbers are costs. Italic letters after controls indicate assertion violations that controls address C = Completeness V = Validity A = Accuracy Key controls are in bold while non-key controls shown in normal font.

Treasurer reconciles A/R and Sales (C, V, A)

1) Describe different types of information processes and give examples.
2) Describe the control's coverage and give examples.
3) Explain why one of the key controls from example company data in Appendix 2 is a key control.

Answer 1

1) Types of Information Process :

Generally whenever making sales by any one they require purchase order or custicus may contact with any way like posting a mail or through phone they may order. After that if seller may agree to sell for that price then they will enter in to contract or agreement.by way of describing the conditions and when to deliver etc.

Then they will see the stock and then packed accordingly and they should mention the number of card boxes packed and quantity and then they raise the packing invoice. Packing may be done the our selfs or it may be enter in to an. Agreement with the party. If it is entered with third party then we have make payment to them some times packing may includes the shipping also they only may be delivered the quantity to the customer.

Along with the packing slips, they may raise Three copies of invoices or delivery challan.

First copy is for Purchaser

Second copy is for Transporter

Third copy is for Seller

If company is not issuing invoice it should raise the delivery challan and E way bill if it required and then the transporter should take the these things and will be delivered to the customer.

And then he will give Purchaser copy invoice to the customer and in sellers copy they will take sign and the seal of the customer.

Once goods has been b despatched the seller will post the entry in to their respective Software. Sometimes on the invoice they will clearly mention with in how many days they have to pay the amount if they had not paid how much interested has to be charged.

After that we have to make ageing analysis for the Account Receivables how much amount had received from which party and remain how much has to be receive by simply we can say it is the reconcilation for sales the sales and accounts receivable.

2. Controls Coverage:

I)With the help of comparing invoices and packing slips we can know that whether whatever quantity had been send that entire quantity had been raised in invoice. It helps to know the controls completeness and accuracy.

ii) Driver obtain signature it looks it is having an better Validity, completeness and Accuracy controls because with the help of that proof it provides an validity , how much quantity received by the customer provides completeness and accurate.

iii) With the help of sales invoice we have an accurate control on invoice amount and to which party we delivered the goods

iii) With the help of Authorization list it has an better control, because if such person is not authorised then the entire process will not be conduct.

iv) with the help of comparing account receivable batch totals we can consider that it consists of all controls because we will get completeness, Accurate amount to be received and it is also having an validity of amount recovered and to be recovered.

v) Compare sales register to account receivable

It has all controls i.e C,V,A because with the help of sales register we will get an complete and accurate value received amount and also having an true picture regarding amount to be recoverable.

3) Generally not only one control is important it requires all controls then only our entire process will be proper. If any one control is lacking also it becomes difficult only. So all the controls are very much important.

For Example without having an completeness control we are not able to complete the process.