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Apollo Shoes

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Internal Control Questionnaire—Sales Transaction Processing Assertions and Questions | Yes, No, N/A | Comments | Occurrence assertion: | 1. Is the credit department independent of the sales department? | Yes | The credit manager in the treasury department is independent of the salesclerks in the marketing 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. | N/A | There is no enough information in this report for this procedure. | 3. Is access to sales invoice blanks restricted? | Yes | The invoices are locked in a closet in the billing department, and sheets in the numerical sequences are removed only for billing clerks’ immediate loading onto the computer printer. | 4. Are pre-numbered bills of lading or other shipping documents prepared or completed in the shipping department? | Yes | They are completed in the shipping department | Completeness assertion: | 5. Are sales invoice blanks pre-numbered? | Yes | The billing clerks produce a four-copy sales invoice on a renumbered invoice form. But sales order documents are not pre-numbered | 6. Is the sequence checked for missing invoices? | No | There is no procedure to check if the sequence is missing invoice numbers but there is a processes to where a shipment is pending until copy $ is received before the order can be sent out. | 7. Is the shipping document numerical sequence checked for missing bills of lading numbers? | N/A | There is no enough information in this report for this procedure. | Accuracy assertion: | | | 8. Are all credit sales approved by the credit department prior to shipment? | Yes | The credit manager checks the customer’s account receivable balances and other credit file

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