My sister recently visited the UPS office in Washington,DC to mail a package to me.The UPS employee opened the box that was addressed for mailing,looked at the packages inside,re-taped the box,and then accepted the box for mailing to California.My sister asked her what she was looking for.The UPS clerk replied,"I don't know,but my supervisor told me that we have to open and search all boxes before we accept them."
a.Describe what is wrong with this internal control procedure.b.Design an effective internal control for this situation.c.How would the auditor determine if the control was effective in detecting or preventing errors?
d.What is the error the control is designed to prevent?
e.Assume that the control required the employee to initial the mailing invoice prepared by the UPS employee after performing the control.The auditor has reviewed a sample of invoices and found no deviations.All forms included the UPS clerk's initials.What would the auditor assume about the control?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q96: Which of the following does the COSO
Q97: Which of the following are entity level
Q98: Which of the following is not required
Q99: Management assesses its internal control and issues
Q100: Controls over the period ending reporting process
Q102: Why are information technology application controls important?
Q103: What is the auditor's responsibility for computerized
Q104: Assume that you have been hired by
Q105: What role do internal controls play in
Q106: If there is a material weakness in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents