Internal Control Deficiencies Flashcards Preview

Audit Simulation > Internal Control Deficiencies > Flashcards

Flashcards in Internal Control Deficiencies Deck (20):
1

Sales Clerk Receives customer orders

No Deficiency - should receive the order

2

Sales Clerk has a copy of sales order in addition to the original

No deficiency - should have a copy

3

Sales Clerk prepares sales order without shipping advice

No deficiency - No shipping document will be present at this point since the goods have not been shipped

4

Warehouse clerk Initiates posting to inventory records by preparation of shipping advice

Deficiency

5

Warehouse clerk Releases merchandise to customers before proper approvals of customers' credit.

Deficiency

6

Warehouse clerk Does not retain a copy of the shipping advice for comparison with receipt from carrier.

Deficiency

7

Warehouse clerk Forwards invoice to customer

No Deficiency - they don't do this???? double check this

8

Bookkeeper A Authorizes customers' credit and prepares source documents for posting to customers' accounts.Authorizes customers' credit and prepares source documents for posting to customers' accounts.

Deficiency

9

Bookkeeper A Prepares invoices without notice that the merchandise was actually shipped and the date it was shipped

Deficiency

10

Bookkeeper A Prepares invoices without access to customers' checks

No Deficiency - Invoice should be prepared prior to receiving customer's checks

11

Bookkeeper A Authorizes write-offs of customer accounts receivable and authorizes customers' credit

Deficiency

12

Bookkeeper A Authorizes write-offs of customers accounts but does not post the sales journal

No Deficiency

13

Collection Clerk Receives customers' checks and posts cash receipts journal

Deficiency

14

Collection Clerk Stamps customers' checks "For Deposit Only."

No Deficiency - Strength of I/C

15

Collection Clerk Lists of checks

No Deficiency - Strength of I/C

16

Collection Clerk Does not compare customer checks with subsequent cash disbursement to replenish inventory.

No Deficiency - this would not be expected

17

Collection Clerk Does not deliver checks excluded from the deposit to an employee independent of the bank deposit for review and disposition.

Deficiency

18

Collection Clerk Initiates posting of receipts to subsidiary accounts receivable ledger and has initial access to cash receipts.

Deficiency

19

Collection Clerk Does not deposit cash receipts promptly.

Deficiency

20

Collection Clerk Reconciles bank statement and has initial access to cash receipts

Deficiency