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Internal Control Questionnaire and Management Assertions The following questions appeared on an internal control questionnaire for sales transactions. Beside each of internal control question indicate (i.e. write-in) the related management assertion for which the internal control would be most effective in preventing or detecting assertion may be used more than once, or not used material misstatements. An Management Assertions 1. Occurrence or Existence 2. Rights and Obligations 3. Completeness 4. Cutoff 5. Accuracy or Valuation and Allocation 6. Classification Assertion A Are sales invoioe blanks prenumbered? A B Are all credit sales approved by the credit B department prior to shipment? C Are invoice quantities compared to D Are summary journal entries approved D E Are sales prices and terms based on B F Is access to sales invoice blanks shipped quantities? before posting? approved standards? restricted? G Does the accounting manual contain instructions to date sales invoices on the shipment date? H Are returned sales credits supported by H I Are prenumbered bills of lading prepared | |! J Are periodio sales data reported directly documentation? in the shipping department? to general ledger accounting independent of accounts receivable accounting

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