Auditing and Assurance Services 1st Edition by Iris Stuart

تمرين 23

Testing internal control procedures in computerized and manual accounting systems. Accounting systems typically implement controls to prevent misstatements in processing transactions. For each of the following controls described, (1) indicate the misstatement that could occur if the control is not implemented and (2) identify an audit procedure to test the control's effectiveness.
a. Sales transactions less than $25,000 are approved by the accounting system automatically (without involvement of the credit manager). Sales transactions higher than $25,000 require written approval by the credit manager.
b. All sales invoices are priced according to an authorized price list. Any exceptions to this pricing must be approved by the sales manager.
c. All shipping document are prenumbered and accounted for. Shipping document numbers are noted on all sales invoices.
d. A report of exceptions noting the failure of the invoice amount and the shipping amount to match is sent to the sales manager.