For Each of the Following Computer Controls Identify the Related

question 57

Essay

For each of the following computer controls identify the related potential misstatement.
1.The computer accounts for all goods shipped but not billed.
2.The computer matches the customer number on the sales invoice with the customer number on the sales order.
3.The computer matches the customer on the sales order with the customer master file.
4.The computer matches sales prices with the authorized price list and the sales order.
5.The computer matches the amount of the sales order with the credit authorization on the customer master file.
6.The computer matches the sales invoice information with underlying shipping information.
7.The computer matches all goods pulled from the inventory (perpetual) to the approved sales order.
8.The computer compares the invoice date with the accounting period when the goods were shipped.
9.The computer matches prenumbered shipping documents with the approved sales for each shipment.
10.The computer prints a report of all unfilled sales orders.

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Definitions:

Distribution Center

A warehouse or specialized facility where products are stored and organized for the purpose of redistributing to retailers, wholesalers, or directly to consumers.

Wholesaler

A type of business that buys goods in large quantities directly from manufacturers or distributors and resells them to retailers or other businesses.

Retail Distribution Center

A specialized facility that handles the storage and distribution of goods to retail stores or directly to customers, often involving inventory management, order fulfillment, and transportation logistics.

Manufacturer's Representative

An individual or business that sells a manufacturer's products to wholesale and retail customers, but does not take ownership of the goods.