Professional Documents
Culture Documents
SAP Revenue Cycle Tests
SAP Revenue Cycle Tests
SAP Revenue Cycle Tests
3
Review Sales Documents
1 and Balances for Unusual
Trends and Exceptions
4
On the Table field, Type „ORDR‟ then press
Tab. The Field names and description will
appear. (Note: ORDR is the table name of
Sales Order in the MSSQL where the database
used in SAP are running)
Double click the following field names:
DocNum, DocDate, CardCode, CardName,
DocTotal
~ (Tip: You can list the field name alphabetically by
double clicking the name title)
Click in the Sort By field then double click
DocTotal in the list of Field names.
Then click execute to produce the ad hoc
report, “List of Sales Order”
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6
2 You can do the same to other documents (such as PO).
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3 4
Review Sales Invoices and
Customer Master Data for Missing
and Duplicate Items
3 Review Sales Invoices and
Customer Master Data for Missing
4 and Duplicate Items
Searching for missing and/or duplicate
transactions and data entries is another
important test that helps the auditor
corroborate or refute the completeness and
accuracy assertions. Duplicate and missing
transactions in the revenue cycle may be
evidence of over or understated sales and
accounts receivable.
10
Review Customer Balances
3 For Unusual Trends &
Exceptions
13
5
Aging of Accounts Receivable
5 Aging of Accounts Receivable
The auditor‟s objective regarding proper valuation and
allocation is to corroborate or refute that accounts
receivable are stated at net realizable value. This
objective rests on the reasonableness of the allowance
for doubtful accounts, which is derived from aged
accounts receivable balances.
To achieve this objective, the auditor needs to review
the accounts receivable aging process to determine
that the allowance for doubtful accounts is adequate.
As accounts age, the probability that they will
ultimately be collected is decreased. Therefore, as a
general rule, the larger the number of older accounts
that are included in an company‟s accounts receivable
file, the larger the allowance for doubtful accounts
needs to be to reflect the risk.
15
Aging of
5 Accounts Receivable