AUDITING PROBLEMS I TTh 4:00 – 5:30 P.M.

Room 303 01/09/18

FERNANDEZ , Mary Angel

LOPEZ , Lindy Ann
SUSON , Donabella
GIMENA , Eddie Loyd

SEA TRANSPORTATION:

WHAT COULD GO WRONG INTERNAL CONTROL AUDIT PROCEDURE

1. Manipulation of Segregation of duties of the Review of accounts related to
documents employees the concerned departments
2. Error in sales Performance reviews, Confirming and examining
discount, returns, authorization of discounts, receivables to customers
allowances returns, allowances to a
computations department
3. Errors in foreign Authorization of transactions Testing valuation of
currency receivables denominated in
denominated foreign currency
transactions
4. Issues resulting from Authorization of transactions Determining that such
related party transaction have been
transactions properly approved and is
appropriate under the
company’s by-laws
5. Unbilled passengers Strict entrance Reconciliation of the list of
passengers to the sales
journal
6. Duplication of sales Prenumbered sales Reconciliation of related
receipts documents documents to the sales
journal
7. Unshipped goods List goods shipped on a daily Review of the summary of
basis (including time of activities with corresponding
shipment to time of arrival) receipts
8. Delayed goods List goods shipped on a daily Review of the summary of
basis (including time of activities for the month
shipment to time of arrival) before and after year-end
9. Uncollectibility of Check customer credit Ascertain reasonability of
Receivable background write-offs
10. Defective and lost List goods shipped on a daily Ascertain reasonability of
goods upon transit basis (including time of cancellation of sales
shipment to time of arrival)