KEY TERMS 1. Accounts Receivable Subsidiary Ledger – account records of customers containing the customer name, customer address, current balance, available credit, transaction dates, invoice numbers, and credits for payments, returns, and allowances. It is updated from information the sales order provides. 2. Analytical Review – provides the auditor with an overall perspective for trends in the account balances. 3. Batch Control Totals – calculated totals for each batch on a transaction file to reconcile output produced by the system with the input originally entered into the system. 4. Bill of Lading – a formal contract between the seller and the shipping company (carrier) to transport the goods to the customer. This document establishes legal ownership and responsibility for the assets in transit. 5. Confirmation of Accounts Receivable – test of existence which involves direct written contact between the auditors and the client’s customers to confirm account balances and transactions. 6. Controller – responsible for managing the firm’s accounting duties, including producing financial statements, cost accounting, paying taxes, and gathering and monitoring the data necessary to oversee the firm’s financial well-being. 7. Credit Authorization – procedures to establish the creditworthiness of customers. Only customer transactions that meet the organization’s credit standards are valid and should be processed further. 8. Credit Memo – the document of authorization for the customer to receive credit for the merchandise received. 9. Customer Open Order File – used for future reference to enable the clerk to find the sales order and respond to the customer’s questions. 10. Customer Order – indicates the type and quantity of merchandise being requested. It does not have a standard format and it may not be a physical document. It