Apollo Shoe Case Assignment
Apollo Shoes Case Assignment Apollo Shoes Inc., Anderson, Olds, and Watershed has enjoyed working with your company this year, and look forward for more to come. Enclosed are the item that your company has requested of us, while there are some improvements to be made, your staff has done a fantastic job in assisting us with our audit. We hope that we have assisted your company and answered any questions about improvements to be made.
Team C
Sales Internal Control Questionnaire for Apollo Shoes Audit
Internal Control Questionnaire—Sales Transaction Processing
Assertions and Questions Yes, No, N/A
Comments
Occurrence assertion: 1. Is the credit department independent of the sales department? Yes The credit manager is the treasury department which is independent of the salesclerks in the marketing department.
2. Are sales of the following types controlled by the same procedures described below? Sales to employees, COD sales, disposals of property, cash sales, and scrap sales. N/A There is not enough information in this report for this procedure.
3. Is access to sales invoice blanks restricted? Yes The invoices are locked in a closet in the billing department, and sheets in the numerical sequences are removed only for billing clerks’ immediate loading onto the computer printer. 4. Are pre-numbered bills of lading or other shipping documents prepared or completed in the shipping department? Yes They are completed in the shipping department
Completeness assertion: 5. Are sales invoice blanks pre-numbered? Yes The billing clerks produce a four-copy sales invoice on a renumbered invoice form. But sales order documents are not pre-numbered. 6. Is the sequence checked for missing invoices? No There is not a procedure to check if the sequence is missing invoice numbers but there is a processes to where a shipment is pending until copy $ is received before the order can be sent out. 7. Is the shipping document numerical sequence
Team C
Sales Internal Control Questionnaire for Apollo Shoes Audit
Internal Control Questionnaire—Sales Transaction Processing
Assertions and Questions Yes, No, N/A
Comments
Occurrence assertion: 1. Is the credit department independent of the sales department? Yes The credit manager is the treasury department which is independent of the salesclerks in the marketing department.
2. Are sales of the following types controlled by the same procedures described below? Sales to employees, COD sales, disposals of property, cash sales, and scrap sales. N/A There is not enough information in this report for this procedure.
3. Is access to sales invoice blanks restricted? Yes The invoices are locked in a closet in the billing department, and sheets in the numerical sequences are removed only for billing clerks’ immediate loading onto the computer printer. 4. Are pre-numbered bills of lading or other shipping documents prepared or completed in the shipping department? Yes They are completed in the shipping department
Completeness assertion: 5. Are sales invoice blanks pre-numbered? Yes The billing clerks produce a four-copy sales invoice on a renumbered invoice form. But sales order documents are not pre-numbered. 6. Is the sequence checked for missing invoices? No There is not a procedure to check if the sequence is missing invoice numbers but there is a processes to where a shipment is pending until copy $ is received before the order can be sent out. 7. Is the shipping document numerical sequence
References: Boynton, W.C., & Johnson, R.N. (2006). Modern auditing: Assurance services and the integrity of financial reporting (8th ed.) Hoboken, NJ: Wiley McGraw-Hill Companies. (2007). Apollo Shoes Case. Retrieved December 2, 2012, from Resource: https://ecampus.phoenix.edu/secure/aapd/ubam/acc491/r4/acc491r4apolloshoesintro.htm