Revenue & Receipts Cycle

Question 1

Control activities 1 & 2

Answer 1

1. Picker to initial picking slip for each item selected & identify items that are not out of stock on picking slip
2. Supervisory checks should be performed by foreman to ensure that all goods are supported by by signed picking slips

Question 2

Control activity 3

Answer 2

3. Warehouse clerk MUST:
   * Checks goods in accordance with picking slip
   * Prepare delivery note from picking slip (cross referenced)
   * Prepare back-order note from picking slip (both cross referenced)
   * Send copy of back-order note to order clerk
   * Send copy of back-order note to purchasing department

Question 3

Control activities 4 & 5

Answer 3

4. Back-orders should be followed up regularly by order clerk
5. Delivery notes must be matched & filled numerically

Question 4

Control activity 6

Answer 4

6. Employees must sign documents & records to acknowledge the control procedures they’ve conducted