Apollo Shoes, Inc.
Internal Control Questionnaire Sales Transaction Processing
December 31, 2007
Objectives and Questions Yes, No, N/A Comments
1. Is the credit department independent of the sales department? Yes. Credit manager in Treasurer's office
2. Are sales of the following types controlled by the same procedures described below? Sales to employees, COD sales, disposals of property, cash sales and scrap sales. No available information, apparently not applicable
3. Is access to sales invoice blanks restricted? Yes. Kept in locked closet
4. Are prenumbered bills of lading or other shipping documents prepared or completed in the shipping department? Yes. Shipping department …show more content…
Sales invoice batches shall be dated with the date of shipment, and totals of batches (including product line sales for athletic shoes) shall be accumulated each month and recorded in the accounts receivable control and sales revenue accounts. The general ledger supervisor shall approve all monthly summary entries before they are posted to the general ledger. The treasurer shall approve all cash refunds and allowance credit memos for sales returns, after initiation by customer relations personnel. The marketing vice president shall periodically analyze sales activity by product lines in comparison to budgets and forecasts and prior years’ activity.
Cash Management The monthly bank statements shall be mailed to the cash management department in the treasurer’s office. Personnel use the duplicate deposit slips retained when bank deposits were made, the cash receipts journal listing, and the cash disbursements listing to reconcile the general bank accounts. The payroll bank account is also reconciled, utilizing the payroll register retained by the treasurer’s office. Cash management personnel shall compare cash receipts journal daily deposit records with the bank deposits and duplicate deposit slips when the general bank account reconciliation is performed. At the discretion of the director of internal audit, internal auditors