Key control Test of control
Double check of good packed and sign the GDN Visit the ware house and observe the good
as proof it will ensure that good member perform dispatch process to assess weather all good are
segregated duty in well manner because this will double checked against the GDN
reduce the risk of wrong good being sent to
customer
Customer sign the GDN and return it to murray co Inspect the sample of GDN retained by
it will ensure that sign GDN is retained the in warehouse to ensure they are signed by customer
company record because it will reduce the
dispute with customer
Invoice is raised using GDN it will ensure that Inspect the GDN for evidence being matched to
invoise related to actual quantity of good invoice ageee the details on that will ensure that
dispatched this will reduce the risk of customer control is effective
being invoiced incorrectly this could casuse
customer disatisfication and loss of customer
goodwill
Sales invoices are prepared using using company Inspect the price list approved by the directors
price list it will ensure that sale invoice is charged Compare price list and sample of invoice
using update company price list because corrected prices have been charged
customer will charged and accurate prices other
wise it will missastatment of revenue
Discount must be requested by sales manager Inspect the sales order with discount given for
and authoried by sales director , segregation of evidence of sales director
duty and it will ensure manager request authentic
discount because this reduce the risk of fraud
that may cause loss in revenue
Deficiency Key control
Credit limit is only performed if customer request Credit limit should be performed annually to
there is risk that customer credit limit may have ensure the credit limit is originally given to
change and co is not aware due to that cutomer customer is till appropriate i
may get more credit then he can pay this will lead
to irrecoverable debt
Credit limit and inventory are checked after the Credit limit and inventory level should be checked
order is confirm there is risk that customer may before the order is conform to ensure the
not have sufficient credit which may result in customer has sufficient credit
irrecoverable debt
Sales invoice are not sequentially numbered Sales invoices should be sequentially numbered
there is risk that good have been not invoiced and a sequence should be performed by
which will result in lost revenue and profit for accountants
company
No review is performed to ensure that all good GDN should be matched to sales invoice and
have been invoiced there is risk that good may check and performed daily or weeky by account
have not invoiced which will result in staff to ensure all GDN have been invoiced
understatement of revenue and receivables