I.

14 16 marks

PART A

CONTROL OBJECTIVES FOR RECORDING OF SALES INVOICES IN THE SALES

JOURNAL

To ensure that:
o invoices that are recorded relate to sales where the goods have been
delivered to customers (or no fictitious invoices are recorded) (1)
o invoices recorded are supported by an approved delivery note and an
approved order (1)
o invoices recorded relate to sales transactions that occurred during the period
(1)
o all invoices that related to transactions that have occurred during the period
are indeed recorded (or that no invoices have been omitted that relate to
transaction that has occurred during the period) (1)
o all invoices are recorded in a timely manner and included in the correct period
(that cut-off of recording happened at the correct date) (1)
o invoices are recorded at the correct amounts in the sales journal (1)
o invoices are correctly classified in the sales journal (1)

Note that summarisation and posting has been excluded as the question specifically
relates to the recording of sales invoices in the sales journal.
AVAILABLE: 7
MAXIMUM: 6
Communications skills – Proper formulation of internal control objectives
(1)

PART B

Number Control activities (2) Internal control

of objectives
controls
1. Access control (1)
Validity (1)
2. Record procedures (1)
Completeness (1)
3. Authorisation (1)
Validity (1)
4. Segregation of duties (1)
Validity (1)
5. Record procedures Reconciliation (1)
Accuracy (1)
Validity (1)
Completeness (1)
AVAILABLE: 5 AVAILABLE: 7
MAXIMUM: 4 MAXIMUM: 6