Professional Documents
Culture Documents
AIS
2A8
A. Flowchart
B. Risks
- Lack of supervision
- Unless required, do not give customer checks and remittance advices to the accounts receivable
department
- Employ strict supervision of the 35 clerks who receive and sort the general mail.
A. Uncontrolled Risks
- There can be a risk of sales to fraudulent customers due to the sales clerk’s mistake in checking
customer credits
- Delivery of wrong products due to incorrect checking of shipment list by the warehouse and shipping
department
- The accounting clerk prepare vouchers and posts it into a single general ledger account
- The shipping clerk gets the merchandise and distributes them to people who haven’t placed their
orders
- Loss of sales invoice after the provision
B. IT Controls
- Segregation of duties
- Reconcile accounts receivable control account with the accounts receivable subsidiary ledger
7. Stewardship