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    Shubh Kumar
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    The internal control questionnaire assesses sales transaction processing controls. It contains 15 questions across 5 assertions: occurrence, completeness, accuracy, classification, and cutoff. Key controls include credit approval prior to shipment, pre-numbered forms, checking for missing documents, verifying prices and quantities, and reviewing arithmetic accuracy of sales data. Overall the controls seek to ensure all valid sales are recorded completely and accurately.

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    Internal_Control_Questionnaire___Sales_Transaction_Processing

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    The internal control questionnaire assesses sales transaction processing controls. It contains 15 questions across 5 assertions: occurrence, completeness, accuracy, classification, and cutoff. Key controls include credit approval prior to shipment, pre-numbered forms, checking for missing documents, verifying prices and quantities, and reviewing arithmetic accuracy of sales data. Overall the controls seek to ensure all valid sales are recorded completely and accurately.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    112 views1 page

    This Study Resource Was Shared: Occurrence Assertion

    Uploaded by

    Shubh Kumar
    The internal control questionnaire assesses sales transaction processing controls. It contains 15 questions across 5 assertions: occurrence, completeness, accuracy, classification, and cutoff. Key controls include credit approval prior to shipment, pre-numbered forms, checking for missing documents, verifying prices and quantities, and reviewing arithmetic accuracy of sales data. Overall the controls seek to ensure all valid sales are recorded completely and accurately.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    Internal Control Questionnaire—Sales Transaction Processing

    Yes, No,
    Assertions and Questions N/A Comments

    Occurrence assertion:
    1. Is the credit department Yes Credit manager is in the treasure’s department.
    independent of the sales department?
    2. Are sales of the following types N/A No information about this in the email from
    controlled by the same procedures Mrs. Ramirez
    described below? Sales to employees,
    COD sales, disposals of property, cash
    sales, and scrap sales.
    3. Is access to sales invoice blanks Yes They are kept in a locked cabinet
    restricted?
    4. Are pre-numbered bills of lading or Yes The Shipping Department prepares these
    other shipping documents prepared or
    completed in the shipping department?

    ed
    Completeness assertion:
    5. Are sales invoice blanks pre- Yes The sales invoice is a four – copy prenumbered form

    ar
    numbered?
    6. Is the sequence checked for missing Yes They check invoice, along with P.O. and
    invoices? Requisition to make sure everything is

    sh
    accurate

    7. Is the shipping document numerical No No information about checking the B.of L. For
    sequence checked for missing bills of accuracy

    m as
    lading numbers?

    Accuracy assertion:
    8. Are all credit sales approved by the
    credit department prior to shipment?
    co w Yes Credit manager’s job
    o. e
    9. Are sales prices and terms based on Yes The prices all come from an approved price
    approved standards? list
    er urc

    10. Are returned sales credits and other N/A No information


    credits supported by documentation as
    to receipt, condition, and quantity, and
    eH so

    approved by a responsible officer?


    11. Are shipped quantities compared to Yes Yes, they check invoice number 4 and
    invoice quantities? compare it.
    rs re

    12. Are sales invoices checked for error Yes They check everything against copy 3 of the
    in quantities, prices, extensions and invoice to make sure the correct amounts
    went out
    ou dy

    footing, and freight allowances, and


    checked with customers’ orders?
    13. Is there an overall check on Yes VP of the Finance Department
    a C stu

    arithmetic accuracy of period sales data


    by a statistical or product-line analysis?
    14. Are periodic sales data reported Yes All invoices were properly posted to the
    directly to general ledger accounting general ledger
    independent of accounts receivable
    is

    accounting?
    Th

    Classification objective:
    15. Does the accounting manual contain Yes. P. 61
    instructions for classifying sales?

    Cutoff objective:
    vi

    16. Does the accounting manual contain N/A No information n


    instructions to date sales invoices on
    the shipment date?

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