Question

The following are misstatements that can occur in the sales and collection​ cycle:

Misstatements

	1. A customer number on a sales invoice was transposed​ and, as a​ result, charged to the wrong customer. By the time the error was​ found, the original customer was no longer in business.
2.	1A former computer​ operator, who is now a​ programmer, entered information for a fictitious sales return and ran it through the computer system at night. When the money came​ in, he took it and deposited it in his own account.
3.	A nonexistent part number was included in the description of goods on a shipping document.​ Therefore, no charge was made for those goods.
4.	A customer order was filled and shipped to a former​ customer, that had already filed for bankruptcy.
5.	The sales manager approved the price of goods ordered by a​ customer, but he wrote down the wrong price.
6.	A computer operator picked up a​ computer-based data file for sales of the wrong week and processed them through the system a second time.
7.	For a​ sale, a data entry operator erroneously failed to enter the information for the​ salesman's department. As a​ result, the salesman received no commission for that sale.
8.	Several remittance advices were batched together for inputting. The cash receipts clerk stopped for​ coffee, set them on a​ box, and failed to deliver them to the data input personnel

Requirements

a. Identify the​ transaction-related management​ assertion(s) to which the misstatement pertains.

b. Identify one automated control that would have likely prevented each misstatement.

Misstatement

1-thur 8 match to the option

Requirement A Choices Has 9 options                                   Requirement B Has 6 options

Transaction Related Management Assertions                       Computer Based Control                                                 

Accuracy                                                                                 Check digital

Classification                                                                          Scheduling of computer processing

Completeness                                                                         Conversion verification

Completeness / Accuracy                                                       Cutoff procedures

Completeness / Cutoff                                                             Preprocessing review

Cutoff                                                                                     Control totals reconciled to manual   

Occurrence / Accuracy

Occurrence / Cutoff

Answer 1