Tugas Auditing 1

Iqlima Faza Hariny/1181002012

The following are misstatements that have occurred in Fresh Foods Grocery Store, a retail
and wholesale grocery company:
1. On the last day of the year, a truckload of beef was set aside for shipment but was
not shipped. Because it was still on hand, the inventory was counted. The shipping
document was dated the last day of the year, so it was also included as a current-
year sale.
2. The incorrect price was used on sales invoices for billing shipments to customers
because the wrong price was entered into the computer master file of prices.
3. A vendor invoice was paid even though no merchandise was ever received. The
accounts payable software application does not require the input of a valid receiving
report number before payment can be made.
4. Employees in the receiving department took sides of beef for their personal use.
When a shipment of meat was received, the receiving department filled out a
receiving report and forwarded it to the accounting department for the amount of
goods actually received. At that time, two sides of beef were put in an employee’s
pickup truck rather than in the storage freezer.
5. An accounts payable clerk processed payments to himself by adding a fictitious
vendor address to the approved vendor master file.
6. During the physical count of inventory of the retail grocery, one counter wrote down
the wrong description of several products and miscounted the quantity.
7. A salesperson sold an entire carload of lamb at a price below cost because she did
not know the cost of lamb had increased in the past week.
8. A vendor’s invoice was paid twice for the same shipment. The second payment arose
because the vendor sent a duplicate copy of the original 2 weeks after the payment
was due.
Required:
a. For each misstatement, identify one or more types of controls that were absent.
b. For each misstatement, suggest a control that may have prevented or detected the
misstatement.

JAWABAN:

1. On the last day of the year, a truckload of beef was set aside for shipment but was
not shipped. Because it was still on hand, the inventory was counted. The shipping
document was dated the last day of the year, so it was also included as a current-
year sale.
a. Independent check on performance, and adequate documents and records.
 b. The physical count of inventory on the last day of the year must be carefully
coordinated with the recording of sales to make sure that billed inventory has
not been counted and counted inventory has not been billed

2. The incorrect price was used on sales invoices for billing shipments to customers
because the wrong price was entered into the computer master file of prices.
a. Independent check on performance, and adequate documents and records.
b. Make sure the billing clerk has the most recent price list, and design software to
require the verification of price changes before the changes are processed.

3. A vendor invoice was paid even though no merchandise was ever received. The
accounts payable software application does not require the input of a valid receiving
report number before payment can be made.
a. Adequate documents and records, and proper authorization of transition
activities.
b. Include a control in the accounts payable software that requires the input of a
valid receiving report number before the software will process a payment on an
accounts payable.

4. Employees in the receiving department took sides of beef for their personal use.
When a shipment of meat was received, the receiving department filled out a
receiving report and forwarded it to the accounting department for the amount of
goods actually received. At that time, two sides of beef were put in an employee’s
pickup truck rather than in the storage freezer.
a. Adequate documents and records, Physical control over assets and records
Independent checks on performance
b. Require the accounting department to maintain perpetual inventory records and
take physical counts of actual sides of beef periodically.

5. An accounts payable clerk processed payments to himself by adding a fictitious

vendor address to the approved vendor master file.
a. Adequate separation of duties
b. Restrict the accounts payable clerk from being able to make changes to the
approved vendor master file. Only allow purchasing personnel to input changes
to that master file. Require approval for the addition of supplier data. Perform
periodic checks of the validity of supplier data.

6. During the physical count of inventory of the retail grocery, one counter wrote down
the wrong description of several products and miscounted the quantity.
a. Independent checks on performance
b. Get a second count to conduct independent checks on the first counter’s
performance. Counts by qualified personnel and independent checks on
performance
7. A salesperson sold an entire carload of lamb at a price below cost because she did
not know the cost of lamb had increased in the past week.
a. Proper authorization of transactions and activities
b. Make sure that the salesperson has a current price list. Require independent
approval of all transactions, including the price, before shipment is made.

8. A vendor’s invoice was paid twice for the same shipment. The second payment arose
because the vendor sent a duplicate copy of the original 2 weeks after the payment
was due.
a. Adequate documents and records
b. Require that payments only be made on original invoices. Require a receiving
report be attached to the vendor's invoice before a payment is made