Question

The date is now June 27 and you just realized that you have not performed a three-way match for Invoice No. 16-58742. You are missing the evidence that the quantities ordered were received in the warehouse. You phone over to the warehouse but find that everyone has gone home for the day. What should you do?

Answer 1

In this case, we understand that the goods received note in missing in the warehouse. So we should perform alternate procedures to test the accuracy of transaction. Below alternate steps to be performed-:

(i) Delivery date of the product should be traced to the invoice.

(ii) Delivery notes should be checked online for receipt of goods. Delivery notes mentions the place of delivery and the person receiving the same. This should be confirmed with the company's records.

(iii) Online inventory records should be checked for receipt of goods in the books of accounts.

(iv) Payment authorization of invoice can be checked if it was approved for payment. Assuming payment can only be approved if the goods has been physically checked at the premises.

All the above procedures can confirm the existence of goods in the warehouse.