Apollo Shoes Inc Revenue Processing Controls 31 Dec 12 Prepared By Cg 4 28 2012 Reviewed By Cg 4 28 2012 Strength Weakness Audit Implication Test of Controls Audit Programs Credit segregation to Approve credit was in fact credit Issued to customers in question Record correct account A R amounts Selected credit invoices and reviewed credit approval Several customers with current credit line lack credit approval Examined customer s invoices and found wrong qualities shipped Ship and invoice correct quantities for inventory purposes Examined customer s purchases orders and found B L s missing Errors resulted on unpaid invoices from risk customers inventory loses and A P over or understated S 1 S 2 S 3 W 1 No credit approval Poor verification of merchandise cost by appropriate sales order department Shipping department verification of goods shipped with sales order Customer files lacked credit approval wrong amounts shipped and wrong cost charged Test of Controls Audit Programs Compensating Substantive Procedures Prepared By Cg 4 28 2012 Reviewed By Cg 4 28 2012 Selected credit invoices and reviewed credit approval Several customers with current credit line lack credit approval Examined customer s invoices and found wrong qualities shipped Examined customer s purchases orders and found B L s missing Performed substantive testing of revenue control on credit applications A R and shipping documents
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