BU537 Lecture Notes - Lecture 11: Subledger
Document Summary
Checking shipping doc and matching to approved sales order before invoicing. Independent invoice checks focusing on prices used and mathematical accuracy. Controls: ensure total invoices entered into the journal matches total sales posted to ar ledger, sequential number sales invoices as there would be an alert for missing numbers, regular statements sent out to customer. Independent check of the ar ledger against the balance in the control account in the gl: performance reviews done by sales executives, segregation of duties. Involves: receiving cash, depositing cash in bank, recording receipts. Risk: cash paid by customer is stolen before recorded, errors. Controls to have in place: cameras, reconcile daily by accountant. Independent checks of cash on hand compared to totals printed by the register or terminal before the cash is forwarded to the cashier"s department for deposit: at least two clerks should open the mail. The journalizing of cash receipts and posting of the receipts to customer accounts should be segregated.
