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- This topic has 5 replies, 2 voices, and was last updated 10 years ago by dookhan12.
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- March 31, 2014 at 4:40 pm #163798
Hello.
I just wanted to confirm 2 things.
1st:
All documents in the sales system namely:
– Sales order
– Goods despatch notes and
– Invoicesshould be sequentially pre-numbered so that if for instance we are seeing Invoice #1,2 and 4 then we can conclude that their is a possibility of Invoice #3 is missing and there is also a possibility that their is a GDN for which no invoice was generate and therefore a customer was not billed and also revenue not recognised?
Is my thinking right about the purpose of having sequentially pre-numbered documents?
2nd:
With regards to the control objectives for this system, their are some listed in the textbooks. However I find it quite boring to study word for word objectives and I find myself able to use my practical common sense based on risks in the system to devise objectives.Risk:
Customer may place orders but we have not received it.
Sales may be placed by customers who are not credit worthy or they may exceed their credit limits.Control objective:
To ensure that all sales from our customers have been received.
To prevent customers from their exceeding credit limits.
To ensure orders are placed only by customers who are credit worthy perhaps through conducting a credit check by credit rating agencies.Thanks!
March 31, 2014 at 5:06 pm #163805As long as the controls are reasonable they are mark worthy……….Cramming will not help us in this paper so thats very good that u can use practical common sense…………..the control objective that you have written no 1…….is lacking ……….. the way ………how will you ensure that all sales have been received…….(that WILL be the control)……….control no.2 also needs “HOW”……………..control 3 is 1 big full mark :D…………………(remove the word PERHAPS)
About all of this, it will be good if one of Opentuition Tutors would correct me i f i am wrong and i dont know it :))
March 31, 2014 at 5:07 pm #163806About SEQUENCE…….yes you are correct
April 1, 2014 at 12:30 am #163847Thanks for all the help! 🙂
About the control objectives, I wasn’t talking about the controls. I was talking about the objectives of the sales system. Were those objectives correct?
April 1, 2014 at 12:37 am #163848Yup they are………………………………. Dear Opentuition Team I am really sorry i really did not know that only tutors are allowed for this section :))
April 2, 2014 at 6:08 pm #164049Thanks 🙂
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