CONTROL ACTIVITY SALES PROCESSING
TRANSACTION AUTHORIZATION Credit Check
Return Policy
SEGREGATION OF DUTIES Credit is separate from
processing. Inventory control is
separate from warehouse. AR
Subsidiary Ledger is separate
from General Ledger.
SUPERVISION
ACCOUNTING RECORDS Sales orders, sales journals, AR
Subsidiary Ledger, AR Control,
Inventory Subsidiary Ledger,
Inventory Control, Sales account
ACCESS Physical access to Inventory.
access to acctg. records above
INDEPENDENT VERIFICATION Shipping, Billing, General Ledger
CASH RECEIPTS
Remittance List (prelist)
Cash Receipt is separate from
AR and Cash Accounts. AR SL is
separate from GL.
Mail Room
Remittance advices, check,
remittance list, AR SL, AR
Control, Cash receipts journal,
cash account
Physical access to Cash.
access to acctg. records above
Cash Receipt, General Ledger,
Bank Reconciliation.