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 QuestionsYes, No, N/A
1.Is the credit department independent of the sales department?YesThe 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/AThere is not enough information in this report for this procedure.
3.Is access to sales invoice blanks restricted?YesThe 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?YesThey are completed in the shipping department
5.Are sales invoice blanks pre-numbered?YesThe 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?NoThere 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 checked for missing bills of lading numbers?YesCopy 2 of the bill of lading is sent with invoice copy 4 to the accounts receivable department.
8.Are all credit sales approved by the credit department prior to shipment?YesAfter credit it approved the a renumbered invoice form is submitted to shipping/delivery
9.Are sales prices and terms based on approved standards?YesThe credit manager checks the customer’s accounts receivables balance and other credit file information using a computer-based inquiry system.
10.Are returned sales credits and other credits supported by documentation as to receipt, condition, and quantity, and approved by a responsible officer?N/AThere is not enough information in this report for this procedure.
11.Are shipped quantities compared to invoice quantities?YesThe shipping department, the shipping employees remove copy 3 of the invoice in the pending release file and compare it to the copy 4 invoice and products pulled to ship/
12.Are sales invoices checked for error in quantities, prices, extensions and footing, and freight allowances, and checked with customers’ orders?YesThe system that is in place, there is a few different check areas. Accounts Receivables, Billing Department, shipping clerk checkers, and the inserts related to the invoices indicate that these are done.
13.Is there an overall check on arithmetic accuracy of period sales data by a statistical or product-line analysis?YesThe VP of Finance reviews the documentation for consistency and accuracy.
14.Are periodic sales data reported directly to general ledger accounting independent of accounts receivable accounting?NoThey are all invoiced process properly posted to the general ledger sales and accounts receivable control accounts. They keep them separate to allow them to match and audit their transactions.
15.Does the accounting manual contain instructions for classifying sales?...