Accounting-Audting Assignment Example | Topics and Well Written Essays - 500 words

Accounting-Audting - Assignment Example Secondly, the committee has the powers to influence appropriate actions against fraud which aids governance in terms of ethics establishment. Thirdly, they enhance both internal and external audit functions as internal auditors report to them and they have the ability of monitoring external auditors’ activities1. According to ISA (400) the failure of tests of control on the preliminary assessment about control risk has the effect of derailed effectiveness of the specific control, this result into ineffectiveness of the audit conducted according to the audit plan1. There are a variety of the sales system weaknesses derail the sales performance. They include: first; Need for approval, the document and those handling them need to be approved at each stage which has never been the case in this system. Secondly, there is the likelihood that the parties involved in the process may be emotionally involved hence derailing prospective focus that would result into loss of control1. Thirdly, there is self limiting in the manner in which the records of sales are collected and unfairly allocated; this is in the case where the driver handles all the invoices with the management remaining with none. Fourth, the buy cycle is not quite supportive to the sales system since apart from simply making payments of deliveries they do nothing else to support in the audit process therefore the buyers do not at in any way required to support the selling process. Fifth, the sales system in question is quite insensitive to the critical issues that revolve around money wh ether payment or receipt1. Within the entire sales department there is actually non among the salespeople who mentions any issue around budget in terms of whether there is a prospect likely to afford the product offered by John limited or not. The existence for assertion for inventory is verified using numerous processes among which is