Professional Documents
Culture Documents
What are key controls? Key controls are elements of internal control that
have a pervasive affect upon the accomplishment of management's
control objectives. In fact, Matahari Department Store also has a key
controls regarding its internal environment.
I.
Ethical Code
Since 2011, Matahari Department Store has been applying Whistle Blowing
System into the entire internal system. Whistle Blowing System is an
application designed by Ministry of Finance for any parties inside the
company for who has information regarding inappropriate behavior, which
happens in the internal environment.
TransactionRelated Audit
Objectives
1. Recorded sales
are for
shipments
actually made
(Occurrence)
2. All existing
documents are
recorded
(Completeness)
3. Recorded sales
are correctly
billed
(Accuracy)
4. Sales
transactions are
correctly
summarized
(Posting)
Key Controls
Test of Controls
Substantive Test
of Transactions
- Sales are
supported by
authorized
shipping
documents and
approved
customer orders
- Comparing total
batch of quantities
to quantities billed
- Shipping
documents are
prenumbered and
accounted weekly
- Examine
customer order for
evidence of credit
approval
- Examine sales
invoice for
supporting bill of
lading & order
- Trace sales
journal entries to
supporting
documents
including all the
duplicates
document
- Examine file of
batch totals
- Trace selected
shipping
documents to the
sales journal
- Unit selling
prices are
obtained from the
price list master
file of approved
prices
- Automatically
posts transactions
by computer to
the related
account
- Examine the
approved price list
for accuracy and
proper
authorization
- Recompute
prices on sales
invoices
- Examine the
evidence
- Use audit
software to foot
and cross-foot the
sales journal
5. Correctly
classified
(Classified)
- Account
classifications are
internally verified
6. Sales are
recorded on the
correct dates
(Timing)
- Shipping
documents are
prenumbered and
accounted weekly
- Examine
document
package for
internal
verification
- Account for
sequence of
shipping
documents
- Examine
duplicate sales
invoice
- Compare date of
recording journal
with the duplicate