Sales

Hello.

I just wanted to confirm 2 things.

1st:

All documents in the sales system namely:
– Sales order
– Goods despatch notes and
– Invoices

should 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!