Internal control system Dispatch and invoicing

Question 1

Control for goods dispatched but not recorded

Answer 1

Regular inventory count and investigate differences

Inspect all goods leaving the warehouse have a goods dispatched note accompanies them.

Question 2

Test of control for goods dispatched but not recorded

Answer 2

Review inventory counts and investigate the differences between expected and actual.

Observe the checks for goods dispatched note occurrs

Question 3

Control for goods dispatched but not invoiced.

Answer 3

Have pre-printed and standard goods delivery note forms that are sequentially numbered.

Match goods delivery note to invoices from sequence and inspect goods delivery notes that don’t have a match.

Question 4

Test of control for goods dispatched but not invoiced

Answer 4

Review that goods dispatched notes are being matched to invoices.

Check goods dispatched notes are completely filled out.

Question 5

Control for wrong goods dispatched

Answer 5

Customers sign goods dispatched notes upon delivery.

Agree the goods, and goods dispatched note to customer order form.

Question 6

Test of control for wrong goods dispatched

Answer 6

Check that goods delivery notes support the order forms

Review that customers are signing goods delivery notes

Question 7

control for goods invoiced with incorrect price details or general details

Answer 7

Prepare invoice from standard price list

Agree invoice back to price list and goods delivery note.

Have authorisation in place for any changes in customer data e.g address

Question 8

Test of control for goods invoiced with incorrect price or details

Answer 8

Recalculate invoices eg for VAT charged

Check authorisation for changes to invoice and changes to supporting documentation.

Question 9

Control for invoices raised for goods not supplied

Answer 9

Only raise invoices after goods delivery note raised and match them

Question 10

Test of control invoices raised and goods not supplied

Answer 10

Observe if goods delivery notes have been signed

enquiry of staff

Question 11

Control for credit notes wrongly issued to customers

Answer 11

Credit notes only issued by appropriate level of management.

Sequentially number credit notes and sequence check them.

Question 12

Test of control for credit notes wrongly issued to customers

Answer 12

Agree credit notes with supporting documentation (confirmation of return such as return of goods note, customer return requests etc)

Question 13

Control for goods returned to us not recorded

Answer 13

Have standard, pre printed goods returned notes.

Inspect goods conditions before returning them to stock.

Question 14

Test of control for goods returned to us not recorded

Answer 14

Review records of inventory counts and investigate differences.