Audit Program for Test of Controls over Sales Transactions

Florendo, Villegas, Casintahan and Associates

Test of Controls: Sales
December 31, 2015

Audit Procedures
1. For a sample of entries in the sales journal,
a. Compare date in the sales journal to
approved customer order, sales order,
shipping document, and copy of sales
invoice for
1. Customer order number.
2. Invoice number.
3. Customer name.
4. Date.
5. Description of goods.
6. Quantity.
7. Price.
8. Invoice amount.
9. Terms.
b. Determine credit approval.
c. Determine that signature are on invoices
indicating independent checking for
1. Proper pricing.
2. Mathematical accuracy.
3. Terms.
d. Examine signature evidencing recheck of
accounting coding.
2. For a sample of shipping documents, examine
signatures indicating that for goods shipped,
goods
are
counted,
quantities
and
descriptions on sales orders, and shipping
documents prior to shipping and the
transactions are recorded in the sales journal.
3. Discuss the procedures followed with the
person (independent with the bookkeeper
who mails to customers monthly statements
for all trade accounts receivables and follows
up on any complaints.
Review the clients correspondence file

WP
Ref

Done
By

Date

reflecting resolutions of these terms.

Observe the procedures followed to ensure a
proper cutoff of sales at year-end.
Observe that the accounts receivable
subsidiary ledger is balanced to the general
ledger control account regularly.
Examine evidence of accounting for the
sequence
of
sales
orders,
shipping
documents, and sales invoices.