Credit Management Credit controller
Collect outstanding
debtors
Purpose: (1)To ensure that all
New customer Credit department outstanding debt are collected and Bad debts
Purpose: To ensure that customer is (2) amounts are not misstated. Purpose: (1)To ensu
creditworthy Manual controls: unnecessary bad de
Manual Controls: • CC must recommend to written off and (2) a
• Complete background check to Current customer that have become b
management for approval of debt
confirm credit status Purpose: to prevent them from written off.
overdue.
• Set credit limit becoming bad debts and losing Manual Controls:
• Submit list of debtors to attorney
• Review debtor ledger on regular control • CC must submit
/ credit collection agency
basis Manual controls: docu on decisio
Computer controls:
Computer controls: • Follow up by doing credit debtors off to
• Ensure segregation of duties are
• Update debtors Masterfile with checks management.
present when writing off debtors.
customers new info through the • Review debtors age analysis
• Logs must be printed to review
use of a unique password and activity Control objective:
username. Documents: (1)validity
• CC must have read only access. Debtors age analysis (2)complete
Documents:
• Appropriate screen aids are in Debtors Masterfile Assertion:
place for correct input Control objective: validity (1)completeness + o
Debtors Age Analysis
Assertion: accuracy, valuation (2) Completeness +
General Journal
Documents: and allocation of debtors valuation and comp
Masterfile amendment form Control objective:
Debtors control Masterfile (1)operational control
(2)accuracy
Control objective: validity Assertion:
Assertion: accuracy, valuation and (1)accuracy
allocation of debtors (2)valuation and allocation of
debtors.
, Receive Order from customer Sales order clerk
Purpose 1: Ensure all orders have been Sales department Purpose 3: Product prices agree with
attended to and the price list on Masterfile.
Manual Controls: Purpose 2: To ensure there is sufficient
Manual controls:
• SOC records order using preprinted inventory available for order
• ISO is checked and authorized by
sequentially # ISO and customer details. Manual Controls:
to ensure prices are selected from
• SOC notifies warehouse to check for • Warehouse must do inventory checks/
price list
items and picks what is needed – picking stock count
• If telephone order, clerk must rep
slip is sent back to sales office that • Clerk must confirm with customer that
of order to customer ensuring it i
matches with ISO. goods are not in stock and can be put in
and nothing was omitted.
• ISO file is checked by supervisor for back order.
Computer controls:
outstanding orders (delay in picking), • Clerk must do regular check ups on
• Prices can be selected using drop
sequentially no to ensure all ISO are outstanding order until goods are
linked to the price list Masterfile.
accounted for. received.
• Clerk should not have write-acce
Computer controls: • Clerk must inform customers when
list Masterfile
• ISO must automatically be sequentially goods have arrived.
• Supervisor should monitor logs.
numbered. Computer controls:
• When goods have been picked, computer • Inventory code can be used to check if
Documents:
system can change status to ‘picked’. available.
Pricelist Masterfile
• System must be regularly reviewed and • Check order updates.
followed up by supervisor. Control objective: Accuracy
Documents:
Assertion: accuracy
Documents: Backorder note
Customer order Inventory Masterfile
Internal sales order (ISO)
Picking slip Control objective:
operational control
Control objective: operational control
Assertion: NA
Collect outstanding
debtors
Purpose: (1)To ensure that all
New customer Credit department outstanding debt are collected and Bad debts
Purpose: To ensure that customer is (2) amounts are not misstated. Purpose: (1)To ensu
creditworthy Manual controls: unnecessary bad de
Manual Controls: • CC must recommend to written off and (2) a
• Complete background check to Current customer that have become b
management for approval of debt
confirm credit status Purpose: to prevent them from written off.
overdue.
• Set credit limit becoming bad debts and losing Manual Controls:
• Submit list of debtors to attorney
• Review debtor ledger on regular control • CC must submit
/ credit collection agency
basis Manual controls: docu on decisio
Computer controls:
Computer controls: • Follow up by doing credit debtors off to
• Ensure segregation of duties are
• Update debtors Masterfile with checks management.
present when writing off debtors.
customers new info through the • Review debtors age analysis
• Logs must be printed to review
use of a unique password and activity Control objective:
username. Documents: (1)validity
• CC must have read only access. Debtors age analysis (2)complete
Documents:
• Appropriate screen aids are in Debtors Masterfile Assertion:
place for correct input Control objective: validity (1)completeness + o
Debtors Age Analysis
Assertion: accuracy, valuation (2) Completeness +
General Journal
Documents: and allocation of debtors valuation and comp
Masterfile amendment form Control objective:
Debtors control Masterfile (1)operational control
(2)accuracy
Control objective: validity Assertion:
Assertion: accuracy, valuation and (1)accuracy
allocation of debtors (2)valuation and allocation of
debtors.
, Receive Order from customer Sales order clerk
Purpose 1: Ensure all orders have been Sales department Purpose 3: Product prices agree with
attended to and the price list on Masterfile.
Manual Controls: Purpose 2: To ensure there is sufficient
Manual controls:
• SOC records order using preprinted inventory available for order
• ISO is checked and authorized by
sequentially # ISO and customer details. Manual Controls:
to ensure prices are selected from
• SOC notifies warehouse to check for • Warehouse must do inventory checks/
price list
items and picks what is needed – picking stock count
• If telephone order, clerk must rep
slip is sent back to sales office that • Clerk must confirm with customer that
of order to customer ensuring it i
matches with ISO. goods are not in stock and can be put in
and nothing was omitted.
• ISO file is checked by supervisor for back order.
Computer controls:
outstanding orders (delay in picking), • Clerk must do regular check ups on
• Prices can be selected using drop
sequentially no to ensure all ISO are outstanding order until goods are
linked to the price list Masterfile.
accounted for. received.
• Clerk should not have write-acce
Computer controls: • Clerk must inform customers when
list Masterfile
• ISO must automatically be sequentially goods have arrived.
• Supervisor should monitor logs.
numbered. Computer controls:
• When goods have been picked, computer • Inventory code can be used to check if
Documents:
system can change status to ‘picked’. available.
Pricelist Masterfile
• System must be regularly reviewed and • Check order updates.
followed up by supervisor. Control objective: Accuracy
Documents:
Assertion: accuracy
Documents: Backorder note
Customer order Inventory Masterfile
Internal sales order (ISO)
Picking slip Control objective:
operational control
Control objective: operational control
Assertion: NA
