Page 66 - Auditinf Electronic System

The key control activities for sales are:

1- Adequate Separation of Duties: Separate functions of recording authorization,
custody.

2- Proper Authorization: Credit sales must be approved by credit departments
3- Adequate Documents and records: a copy of uncollectible authorization must not

be available to treasurer.
4- Prenumbered Records: of all related forms to prevent both failure to or

duplicating both recording and billing.
5- Monthly statements: Sending monthly statements is useful tool as it encourages

customer if there is a mistake in their balance
6- Prompt recording: recording transactions on daily basis to prevent manipulation
7- Charts of accounts: to avoid misclassification of transactions and accounts

▪ the auditor associates the controls with the 6 objectives of auditing sales
transactions using Control Matrix.

▪ The auditor Assesses control risk for each objective by evaluating the controls
and deficiencies for each objective.

3) Design Substantive Tests of Transactions for Sales:

66 67
‫جميع الحقوق محفوظة ـ الإعتداء على حق المؤلف بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية‬