IC Review Conclusion(3) /

(1) (2)
Objectives Risk(s) Potential Control Point(s) Suggested Control Test Identified / Weaknesses; Proces
Action Taken
Shipping

The primary objective  Theft of  Pre-numbered  The shipping  Shippin

of the shipping inventory (by documents are accounted department and desc
department function is employees or to ensure that the compares the the auth
to fill customer orders in shipment). inventories ordered are physical count To avoid
efficiently and accurately and of inventory impacts,
accurately, and to completely filled. with the ordered
safeguard inventory. quantities therefor
indicated on timely b
the picking docume
ticket and with and to m
the quantities procedu
indicated on
the copy of the
sales order
that was sent
directly to
shipping from
sales order
entry.
To ensure shipments  Shipments  Perform credit check for  Examine  Credit approval
are made to authorized could be all new customers. appropriate occurs before  The ship
parties only made to  Prepare and periodically document for shipment is goods re
unauthorized update lists of authorized authorized departm
approval of
parties or to  Sales are with the
customers, indicating a credit
the wrong supported by sales ord
maximum credit limit for  Examine  Goods a
party, each customer. authorized
supporting quantitie
potentially shipping
 Statements are sent to bills of lading descripti
resulting to documents and
uncollectible customers each month and customer documen
approved
 accounts order. customer avoid un
receivable.  Observe orders. related p
whether unrecord
monthly delivere
statements are resulting
receivab
sent
potentia
 Trace sales cancelle
journal entries
to supporting
documents,
including
duplicate sales
invoice, bill of
lading, sales
order, and
customer
order.
To ensure that correct  Shipments  Limit access to shipping  Accounting for  Shipping
goods are shipped on could be documents to authorized numerical Documents are
time. delivered too personnel. sequence of prenumbered
late and  Document policies and shipping
incorrect procedures for documents.
shipments scheduling shipments.  Trace
could be  Verify that ordered documents to
delivered, products are in stock, and
potentially recording of
therefore can be shipped
resulting in on a timely basis. sales and
unreturned accounts
goods and receivable
cancelled subsidiary
sales ledger.
To ensure that existing  Sales  Shipping documents are  Account for a  A packin
sales transactions are transacttions prenumbered and sequence of descripti
recorded could be accounted for weekly shipping shipmen
unrecorded. documents. departm
 Trace selected prepared
shipping delivery
often use
documents to
legal con
the sales
the good
journals to be between
sure that each
one is
recorded.