CBE Case – Internal control

You are the audit senior on the interim audit of Swan Co. The company introduced a new system at the beginning of this financial year. You have discussed the new system with the sales director, and have noted the following two points in particular:
(1) Existing and new customers input their orders into computerised orders forms on Swan Co’s website. The order notes the items requested, the billing and sales addresses, the customer number (if any). The system checks whether goods are in stock and approves the order instantly if so. The order is forwarded automatically to the sales department to be prepared.

(2) When an order is ready to send out, the sales department input the details to their system, and if it matches the order, a goods outward note is produced and the invoicing department is notified automatically. Staff have experienced multiple issues of goods outward notes not matching on the system, and have often resorted to simply printing the order and using it as a goods outward note. The printed order is then taken to the invoicing department for invoicing.
The partner has requested that you document the new system fully during the interim audit. She wants the system notes to be easy to update, and to contain an element of evaluation of the system.

Question:

Your audit junior has identified the following possible risks arising from the use of the printed order as a goods outward note and subsequent hand delivery to the invoicing department :
(1) Orders are not fulfilled.
(2) Goods are sent out but not invoiced.
(3) Goods are invoiced but not sent out.
(4) Wrong goods are sent to customers.
Which of the above risks arise from the identified system deficiency?

A 1 and 2
B 2 and 3
C 2 and 4
D 1 and 3

The correct answer under BPP’s kit is C. 2 and 4.

I dont know why (4) can be a risk from this deficiency.

Below is the explanation in BPP Kit, I dont understand it.

“In addition, if the reason the GDN details do not match is that they have been fulfilled incorrectly (rather than due to simple typographical errors), the staff member may assume it is a typing issue and simply print the order, but not double check the goods properly against it, hence 4. In this situation, a customer might be sent 50 goods rather than the ordered 5, but only be invoiced for 5, as the invoice is generated from the order”.

In this explanation, why quantity in invoice is different from quantity in printed order. The question suppose that client used printed order as a goods outward note, and subsequent hand delivery to the invoicing department => Amount in the printed order should be the same vs amount client received (ie 5, not 50).

Please help me give a more understandable explanation.

Thank you.