Accounting Basics: no details

• Determine the procedures implemented for processing and approving a customer’s credit account. There should be a responsible officer or approving committee involved before credit is approved.

• Review the folders maintained for each AR customer and check the completeness of the required documents as bases for granting of approval.

• Determine if photocopies on file have identifying marks to show that they were verified against the original by the control officer.

• Check the appropriateness of the documents submitted: proof of employment, proof of salaries earned, credit scores, and credit reports.

• Review copies of official receipts issued to customers and test-check prices appearing on sales invoices and delivery receipts.

• Take note of formally communicated customer complaints and what actions were taken to thresh-out grievances. Find out if any corrective measures were instituted and, if necessary, investigate the actions taken to address the root cause of the problem(s).

• Ascertain if the OR series were issued chronologically with no breaks in the serial numbers.

• Conduct a physical inventory of all unissued ORs, Sales Invoices, and Delivery Receipts; and take note if they are in the custody of the control officer, properly secured under lock and key. Refer to the printer's delivery receipt in determining the completeness of serial numbers.

• Ascertain if job rotations between clerks, bookkeepers, and cash custodians take place and determine the time interval it takes for said rotation to take place.