sales returns risks and controls – Flashcards
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approval of sales return prior to issuing credit memo
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invalid customers, invalid returns, unapproved pricing
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separation of responsibility for authorization of customer returns from custody of inventory
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fictitious customers
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SOC of inventory from accounts receivable record keeping
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invalid returns or omitted transactions
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preparation of receiving reports and credit memos on pre-numbered docs
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omitted transactions
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preparation of receiving report and receiving log only when products have actually been received
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invalid trans, omitted trans or timing issues
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preparation of credit memos and credit memo journal only when products have been received
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invalid trans, omitted trans or timing issues
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preparation of customer act statements
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wrong customer or incorrect amts
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matching of info on related documents before issuing credit
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invalid trans, incorrect amts, timing and duplicates
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comparison of receiving log with credit memo listing and credit memos
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omitted transactions, incorrect amts, wrong customers
