Internal Control Questionnaire Sales Transaction Processing Assertions and Questions Comments Yes No N A Yes No Yes Yes Yes No No Yes Yes No Yes Yes Yes Occurrence assertion 1 Is the credit department independent of the sales department 2 Are sales of the following types controlled by the same procedures described below Sales to employees COD sales disposals of property cash sales and scrap sales 3 Is access to sales invoice blanks restricted 4 Are pre numbered bills of lading or other shipping documents prepared or completed in the shipping department Completeness assertion 5 Are sales invoice blanks pre numbered 6 Is the sequence checked for missing invoices 7 Is the shipping document numerical sequence checked for missing bills of lading numbers Accuracy assertion 8 Are all credit sales approved by the credit department prior to shipment 10 Are returned sales credits and other credits supported by documentation as to receipt condition and quantity and approved by a responsible officer 11 Are shipped quantities compared to invoice quantities 12 Are sales invoices checked for error in quantities prices extensions and footing and freight allowances and checked with customers orders 13 Is there an overall check on arithmetic accuracy of period sales data by a statistical or product line The credit sales occur in the treasurer department The section does not give a lot of data as do the individual sale types Any sales should have the same process but different for employee sales The invoices are kept in a locked filing closet in the billing department The bill of lading is process and completed in the shipping department one copy is attached to the shipment and the other copy is given to the customer The invoices are pre numbered by the billing clerk I did not find any data that stated there were missing invoices There was no data stating there were missing bills of lading The credit sales are taken to the credit manager who enters the data into the computer system and then uses an inquiry program to show if the credit will be approved or denied There was no mention of returned sales credits and other credits supported by documentation as to receipt or any other quantity and there was not data on the approval by the officer The shipping clerk check and recheck the invoices to ensure the right quantity of items that are ordered and ensure the order is pack in the right boxes The accounts receivable clerk ensures that all sales invoices are checked for error in quantities prices extensions and footing and freight allowances and checked with customers order are duties of the accounts receivable clerk which are in the accounting manual Yes there is an overall check on math accurate of all period sales and data by a statistical or product line analysis by the Vice President of 9 Are sales prices and terms based on approved standards There is a price list that is prior approve and the billing clerk does the terms analysis 14 Are periodic sales data reported directly to general ledger accounting independent of accounts receivable accounting No Classification objective 15 Does the accounting manual contain instructions for classifying sales Cutoff objective 16 Does the accounting manual contain instructions to date sales invoices on the shipment date Yes Marketing The periodic sales data is sent to from the Accounts Receivable Department Yes Yes the accounting manual shows how to classify sales The instructions are in the accounting manual and the general ledger supervisor will approves this process