Identify a necessary control for each of the following potential misstatements in relation to credit sales transactions:
1. Sales may be made to unauthorised customers.
2. Sales may be made without credit approval.
3. Goods may be released from the warehouse for unauthorized orders.
4. Unauthorized shipments may be made.
5. Some shipments may not be invoiced.
6. Invoices may not be journalized or posted to customer accounts.
7. Invoices may be posted to the wrong customer account.

Question

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The Answer of Identify a necessary control for each of the following potential misstatements in relation to credit sales transactions:
1. Sales may be made to unauthorised customers.
2. Sales may be made without credit approval.
3. Goods may be released from the warehouse for unauthorized orders.
4. Unauthorized shipments may be made.
5. Some shipments may not be invoiced.
6. Invoices may not be journalized or posted to customer accounts.
7. Invoices may be posted to the wrong customer account.

Identify a Necessary Control for Each of the Following Potential