Apollo Shoe Case Study

Date: Thu, 17 JAN 2008 7:42:53 +0000
From: "Darlene Wardlaw"
Subject: Understanding the Revenue Cycle
Attachment:

I’ve attached a Sales internal control questionnaire from another engagement that I think you can use for Apollo. You may want to talk to Karina Ramirez to get answers to the questions.

1. Complete the ICQ for Apollo. For “yes” answers, add a comment stating which department and clerk performs the function. For “no” answers, describe the possible “errors” or “frauds” that could occur because of the control weakness. 2. I’ve started a flowchart and listed some strengths and weaknesses, but had to leave before I could finish it. See if you need to add any more strengths and/or weaknesses that you find from the ICQ and narrative descriptions of the revenue cycle.

DW
Internal Control Questionnaire—Sales Transaction Processing

| |Yes, No, N/A | |
|Assertions and Questions | |Comments |
| |
|Occurrence assertion: |
| 1. Is the credit department independent of the sales | | |
|department? | | |
| 2. Are sales of the following types controlled by the | | |
|same procedures described below? Sales to employees, COD | |