Question

Are there any companies that made their payments after the stated due date? How many companies, and what is the total dollar amount of the payments? (Hint: Each company has a two-day grace period beyond the stated due date.) Refer to ELM’s discount policy. Are any companies receiving discounts when the invoice terms indicate they should never be eligible for discounts? What is the total dollar amount of the discounts taken by these companies? (Hint: This refers to the terms of the invoices, not whether these companies paid too late to receive discounts.) Refer to ELM’s discount policy. Are there any companies receiving discount percentages greater than the amount accounting to the policy? Are any companies taking the discount even if they are not paying within the 10-day period? How many companies have done this? (Hint: Each company has a two-day grace period beyond the stated discount period. Also note that companies can partially pay an invoice—payments less than invoice are not necessarily discounts. Only companies eligible for discounts should be considered in this question.) missing customer order forms. How many missing order forms were there? Each customer order should be entered into the system once and only once. Using IDEA, search for duplicate customer order forms. What is the total dollar amount of duplicate orders? To assist with the collectability of accounts receivable, ELM has a policy that all customer orders must be approved and marked as approved in the order system. Create a schedule of exceptions to this policy. What is the total number of orders that have not been authorized? What is the total number of shipped orders that have not been authorized? To ensure the posting of sales in a timely manner and increase the collectability of accounts receivable, ELM has a policy to always invoice customers within two days of shipping. Create a schedule of exceptions to the invoicing policy, and determine the number of shipped orders not invoiced within two days. Based on the tests in (a) to (d), determine which of the presented statements represent appropriate items to be included on a memo assessing the results of tests of controls. You may select as many as apply.

Are there any companies that made their payments after the stated due date? How many companies, and what is the total dollar amount of the payments? (Hint: Each company has a two-day grace period beyond the stated due date.)
Refer to ELM’s discount policy. Are any companies receiving discounts when the invoice terms indicate they should never be eligible for discounts? What is the total dollar amount of the discounts taken by these companies? (Hint: This refers to the terms of the invoices, not whether these companies paid too late to receive discounts.)
Refer to ELM’s discount policy. Are there any companies receiving discount percentages greater than the amount accounting to the policy?
Are any companies taking the discount even if they are not paying within the 10-day period? How many companies have done this? (Hint: Each company has a two-day grace period beyond the stated discount period. Also note that companies can partially pay an invoice—payments less than invoice are not necessarily discounts. Only companies eligible for discounts should be considered in this question.)
missing customer order forms. How many missing order forms were there?
Each customer order should be entered into the system once and only once. Using IDEA, search for duplicate customer order forms. What is the total dollar amount of duplicate orders?
To assist with the collectability of accounts receivable, ELM has a policy that all customer orders must be approved and marked as approved in the order system. Create a schedule of exceptions to this policy. What is the total number of orders that have not been authorized? What is the total number of shipped orders that have not been authorized?
To ensure the posting of sales in a timely manner and increase the collectability of accounts receivable, ELM has a policy to always invoice customers within two days of shipping. Create a schedule of exceptions to the invoicing policy, and determine the number of shipped orders not invoiced within two days.
Based on the tests in (a) to (d), determine which of the presented statements represent appropriate items to be included on a memo assessing the results of tests of controls. You may select as many as apply.

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