Who prepares remittance list?

Mailroom clerk
Control is effective. 2. Mailroom clerk prepares a remittance list and check control total and forwards the list and remittance advices to Accounts Receivable.

Which reconciles the original sales order with the shipping notice to ensure that customers are billed for only the quantities shipped?

Billing reconciles the shipping notice with the sales order to ensure that customers are billed only for the quantities shipped. General ledger reconciles journal vouchers submitted by the billing department (sales journal), inventory control (inventory subsidiary ledger), and cash receipts (cash receipts journal).

Which department prepares the bill of lading?

Once the credit department approves the customer and the order, the sales order is sent to the shipping department, which will generate a shipping document, also referred to as a bill of lading or a waybill.

What task can the accounts receivable AR department engage in to verify that all customers checks have been appropriately deposited and recorded?

What task can the AR department engage in to verify that all checks sent by the customers have been appropriately deposited and recorded? The company should periodically, perhaps monthly, send an account summary to each customer listing invoices and amounts paid by check number and date.

Why did I get a remittance check?

Remittance advice is used by a customer to inform the supplier about a payment status. It contains important information such as the payment amount and what invoice numbers the payment is tendered. If an invoice is paid by check, it’s common to attach a paper remittance advice to the check.

What is a remittance listing?

A remittance advice is a statement that accompanies a payment to a supplier, detailing what was paid. The supplier uses the information on a remittance advice to flag outstanding receivables in its accounting system as having been paid.

Which of the following functions should be segregated to ensure good internal control over cash receipts quizlet?

Which of the following functions should be segregated to ensure good internal control over cash receipts? Employees who handle cash should not be involved in or have access to accounting records nor involved in the reconciliation of cash book balances to bank balances.

Where in the cash receipts process the supervision play an important role?

Supervision plays an important role in the mail room where both the check (asset) and remittance advice (accounting record) are in the hands of one person. Mail room fraud can result, which involves stealing the check and destroying the remittance advice to cover the theft.

How many types of bill of lading are there?

All three Bills of Lading have to be marked Original and the second and third should not be marked as duplicate or triplicate.

What is required on a bill of lading?

(1) Your name and address, or the name and address of the motor carrier issuing the bill of lading. (2) The names and addresses of any other motor carriers, when known, who will participate in transportation of the shipment.

How do you audit cash receipts?

Internal control mechanisms the auditor should check for include documents that establish accountability for the reception of cash and completion of bank deposits, an accurate daily cash summary and deposit slip, requiring daily journal entries that post the amount received to customer accounts and appropriate …

How do you file cash receipts?

Cash receipts procedure

1. Apply Cash to Invoices. Access the accounting software, call up the unpaid invoices for the relevant customer, and apply the cash to the invoices indicated on the remittance advice that accompanies each payment from the customer.
2. Record Other Cash (Optional)
3. Deposit Cash.
4. Match to Bank Receipt.

What is cash remittance?

A cash remittance is when the sender deposits cash instead of using a debit or credit card, cheque, or direct bank transfer to remit. A cash remittance requires the sender to provide their information such as full name, local address, the purpose of the remit.

Which of the following controls could be used to test bank deposits that are recorded but never deposited?

Which of the following controls could be used to detect bank deposits that are recorded but never made? Having bank reconciliations performed by a third party. Single employee.

Which of the following control procedures does an internal auditor expect to find during an engagement to evaluate risk management and insurance?

Which of the following control procedures does an internal auditor expect to find during an engagement to evaluate risk management and insurance? Periodic internal review of the in-force list to evaluate the adequacy of insurance coverage.

What is edit run in AIS?

An edit run is the first run; it detects most data entry errors. Only “clean” data progresses to the sort run. The sort run sequences the transaction records according to its primary key field and possibly a secondary key field.

What are revenue cycle source documents?

Revenue Cycle Source Document Function Sales order Record customer order. Delivery ticket Record delivery to customer. Remittance advice Receive cash. 3. Credit memo Support adjustments to customer accounts.