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14-22 (OBJECTIVES I42, 14-3, 14-4, 14-5) Items 1 through 8 are selected questions of the type generally found in internal control questionnaires used by auditors to obt Obtain a understanding of internal control in the sales and collection cycle. In using the question naire, a "yes" response to a question indicates a possible internal control, whereas a 'no indicates a potential deficiency. 1. Does the computer system automatically approve a credit sale based on preapproved credit limits maintained in a customer master file? 2. Are controlled sequentially numbered shipping documents used and is the sequen of the shipping documents properly accounted for to identify missing documents by staff? 3. Is there a mechanism for proper cancellation of shipping documents? 4. Is the accounts receivable master file reconciled to the general ledger on a monthl asis? 5. Does the accountant independently reconcile the bank account? batch totals of cash receipts compared with computer summary reportof the cash receipts journal by data control clerk? 7. Is there any mechanism to internally verify if cash and credit sales transactions are charged to the correct general ledger account? 8. Is recording of cash receipts performed on a daily basis? Requireda. For each of the preceding questions, state the transaction-related audit objectives being fulfilled if the control is in effect. b. For each control, list a test of control to test its effectiveness

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