Goods Invoiced and Recorded Sales System (2)

Question 1

What is risk (account)

Answer 1

That invoices are posted to the wrong customer account

Question 2

What is control objectives (account)

Answer 2

Ensure that invoices are posted to the correct customer account

Question 3

What is controls (account) (review)

Answer 3

Periodically review customer accounts for any unpaid amounts

Question 4

What is controls (account) (statement)

Answer 4

Send statements to customers on a monthly basis

Question 5

Tests of controls (account)

Answer 5

Review customer correspondence files for evidence of any complaints/instances of incorrect invoices being applied to a customer’s account