Apollo Shoes, Inc.

Sales Transaction Processing Bridge Working Paper

31-Dec-07
Strength/Weakness

Credit Approvals have to be done when there are sales orders. If they are not approved the customers must pay in advance.

Strength

Invoices of sales are numbered before the sale and only accessed by the billing employee

Sales are not recorded until goods are shipped. Invoices are checked for correct product descriptions

Unit prices are takenfrom an authorized list

Shipping personnelhave transactionalteration (initiation)authority to change thequantities on invoices,as well as custody of the goods

Audit Implication

Audit Program

This information is locked in the treasurers office insuring it's safety. The number of uncollectible accounts will not be Audit Implication

Review the receipts of some samples of some recorded transactions Match Debits on bank statement to sales receipts Audit Program

Sales are easier to track because they have a special bumber assigned to them There is accountability because only the billing employee has access to the files. Cutoff will be proper and saleswill not be recorded too early. Sales will describe products accurately for later inventoryand sales classificationaccountin Prices are in accordance withcompany policy, minimizingdisputes.

Match specific sales to invoices

Make sure all cash sales match all of the cash sales invoices

Make sure customer has been approved by credit department for all credit card sales Using the S-1 sample of salesinvoices, vouch prices used tothe price list. Recalculate themath.

Dishonest shipping personnelcan alone let accomplicesreceive large quantities andalter the invoice to chargethem for small quantities. Inthis system, sales and accountsreceivable would beunderstated, and inventorywould be understated

The physical count of inventory will need to beobserved carefully (extensivework) to detect materialmisstatement, if any