COMM 455 Lecture Notes - Lecture 14: Sales Order, Purchase Order, Cheque
Document Summary
Purchase order billing clerk and sales department sales order. Sales order not processed f/s not wrong, but understated, incomplete. If numbered, still does not prove that all sales order that should be recorded are recorded. Timing when it is done; before something is shipped. Would not approve something that they don"t think is collectible: should be someone in finance or credit, not someone in sales, sales want to approve everything to increase commission, take sample of order. Approved sales order shipping finished goods (warehouse) Independence segregation of duties: bill of lading, we shipped it out to cu, must be prenumbered, sequential completeness, what gets shipped out get credit for. E. g. shipped more goods than what is billed: inventory count. Cr inventory: enter in sales - right quantity, right price, right customer. Completeness: e. g. cheque comes in, someone steals it. All cheques we receive are accounted for.
