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Systems and controls

8.2 Sales system control objectives

Stage Objective: To ensure...

Ordering  Goods are only supplied to customers who pay promptly
and in full.

 All orders are processed.

Despatch  Orders are despatched promptly and in full to the correct
customer.

 All orders are despatched.

Invoicing  All goods despatched are invoiced.

 Invoices are raised accurately.

Recording  Only valid sales are recorded.

 All sales and related receivables are recorded and in the
correct accounts.

 Revenue is recorded in the period to which it relates.

 Sales are recorded accurately and related receivables are
recorded at an appropriate value.

Cash received  Cash received is allocated against the correct customer
and invoices to minimise disputes.

 Overdue debts are followed up on a timely basis.

 Irrecoverable debts identified and written off appropriately.

Illustrations and further practice

Now try TYU 1 in Chapter 7

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