Question 4. Western Farms -test of details and CAATS (5%) Western Farms Pty Ltd (Western Farms) is a regional WA-based fruit and vegetable wholesaler. It has a sales system in which computerised cash registers are integrated directly with accounts receivable, sales, perpetual inventory records, and sales commission expenses. At the time of the sale, sales staff key-enter the following information directly into the cash register: . Product number Quantity sold Unit selling price Warehouse code number Sales clerk number Date of sale Cash or credit sale Customer account number (for credit sales) The total amount of the sale, including GST, is automatically calculated by the system and indicated on the cash register's visual display. The only printed information for cash sales is the cash register receipt, which is given to the customer. For credit sales, a credit slip is prepared, one copy is retained by the clerk and these are submitted daily to the accounting department. A summary of sales is printed out daily in the accounting department. The summary includes daily and monthly totals by sales clerks for each warehouse as well as totals for each of the inventory categories by each warehouse. Perpetual inventory and accounts receivable records are updated daily but supporting documentation is limited. Required 1. What major problems does HFH face in verifying Western Farms' sales and accounts receivable transactions and balances? 2. List three tests using CAATs that can be employed to the audit of sales and accounts receivable, including at least one feature of Active Data for Excel. 3. List three programmed controls that Western Stores could implement to reduce the likelihood of cash register operators making errors. Question 4. Western Farms -test of details and CAATS (5%) Western Farms Pty Ltd (Western Farms) is a regional WA-based fruit and vegetable wholesaler. It has a sales system in which computerised cash registers are integrated directly with accounts receivable, sales, perpetual inventory records, and sales commission expenses. At the time of the sale, sales staff key-enter the following information directly into the cash register: . Product number Quantity sold Unit selling price Warehouse code number Sales clerk number Date of sale Cash or credit sale Customer account number (for credit sales) The total amount of the sale, including GST, is automatically calculated by the system and indicated on the cash register's visual display. The only printed information for cash sales is the cash register receipt, which is given to the customer. For credit sales, a credit slip is prepared, one copy is retained by the clerk and these are submitted daily to the accounting department. A summary of sales is printed out daily in the accounting department. The summary includes daily and monthly totals by sales clerks for each warehouse as well as totals for each of the inventory categories by each warehouse. Perpetual inventory and accounts receivable records are updated daily but supporting documentation is limited. Required 1. What major problems does HFH face in verifying Western Farms' sales and accounts receivable transactions and balances? 2. List three tests using CAATs that can be employed to the audit of sales and accounts receivable, including at least one feature of Active Data for Excel. 3. List three programmed controls that Western Stores could implement to reduce the likelihood of cash register operators making errors