Apollo Analytical Procedure Memo

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ICC-Memo
ApolloDate 10/14/12
Initials
While working on some of the sales transactions 51 deviations were discovered. The majority 31 out of 51 were missing credit approval notations. Also 10 of these are still unpaid. This could indicate weak controls in the credit department which could leave the company with a lot of unpaid debt. Special attention should be put on the credit approval process and extra steps should be taken to account for the possible greater allowance for bad debt. There were also many errors in billing but for some reason all prices were overcharged which is unusual as normally there should be undercharges and overcharges. The accounts receivable should closely be inspected as overstatements can make revenue appear greater. More transactions should be tested to figure out the possible cause for the overcharges. There was also no purchase order on invoice 41976 in the month of December (Icc-2) when Apollo was having financial problems. This purchase should be checked for existence as it may be possible it was used to boost up revenue. More sales transactions should be checked especially in December when the company was going through hard times. It was also discovered that most of the deviations occurred in the second half of the year quarters three and four which if control was uniform throughout the year would mean even distribution of deviations not all toward the final quarters.It is important to send out positive confirmations to clients in this period to make sure these transactions actually occurred.
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