You have completed your audit of Tinga Tinga Ltd. You have issued a management letter to the Chief Accountant which identifies weaknesses in the controls over sales. Cash is received over the counter, from salesmen and also through the post. Tinga Tinga Ltd‘s Chief Accountant has asked you for recommendations as to the type of controls you would wish to see in operation in a sales system. Required: Outline the controls you would expect to find in Tinga Tinga Ltd‘s sales system with regard to: Cash collected by salesman

Cash collected by sales men

A daily cash collected report should be prepared by each sales man showing the total cash received from each customer;
The cash collection report should also show the expected cash collection basing on the stock sold and the actual amount. Any variances should be explained;
The marketing manager should also review the cash reports on a daily basis to ensure that all the stock issued for sale has been accounted for;
All the cash and cheques collected should be surrendered to the cashier on a daily basis. This should be kept in a safe and banked regularly;
Debtors‘ statements should be sent to the customers on a monthly basis

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You have completed your audit of Tinga Tinga Ltd. You have issued a management letter to the Chief Accountant which identifies weaknesses in the controls over sales. Cash is received over the counter, from salesmen and also through the post. Tinga Tinga Ltd‘s Chief Accountant has asked you for recommendations as to the type of controls you would wish to see in operation in a sales system.Required:Outline the controls you would expect to find in Tinga Tinga Ltd‘s sales system with regardto: Cash receipts by post
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Printa Limited is a large printing company, which has an on-line computer accounting system. The system is based around a central main frame computer, with terminals serving individual departments. As part of the interim audit work, you have been asked to carry out a preliminary evaluation of ;•The integrity of the data base as far as it is relevant to your audit and,•The effectiveness of the computer controls over sales and debtors.Required: Set out the points, which you would raise, in your preliminary evaluation of controls over sales and debtors
―Most errors in computer based accounting systems can be traced to faulty input. Controls over the completeness and validity of all inputs are vital. Control over data conversions, controls over rejections and their correction and reprocessing, batch controls and computer edit controls affect both completeness and validity‖. Required: Explain the controls that can be established over completeness of input
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Printa Limited is a large printing company, which has an on-line computer accounting system. The system is based around a central main frame computer, with terminals serving individual departments. As part of the interim audit work, you have been asked to carry out a preliminary evaluation of ;•The integrity of the data base as far as it is relevant to your audit and, •The effectiveness of the computer controls over sales and debtors.Required: Describe the controls, which you would expect to be in operation in order to maintain integrity of the database
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