Professional Documents
Culture Documents
Audit of The Revenue and Collection Cycle
Audit of The Revenue and Collection Cycle
Control:
(c) Monthly statements are mailed to all customers with outstanding balances.
Control:
(g) Shipping documents are compared with sales invoices when goods are shipped.
Control:
(f) Daily sales summaries are compared with control totals of invoices.
Control:
(k) Control amounts posted to the accounts receivable ledger are compared with
control totals of invoices.
Control:
(i) Customer orders are compared with an approved customer list.
6. Possible Error and Fraud:
Goods are removed from inventory for unauthorized orders.
Control:
(b) Approved sales orders are required for goods to be released from the warehouse.
Control:
(d) Shipping clerks compare goods received from the warehouse with approved sales
orders.
Control:
(l) Sales invoices are compared with shipping documents and approved customer
orders before invoices are mailed.
Control:
(p) Total amounts posted to the accounts receivable ledger from remittance advices
are compared with the validated bank deposited slip.
Control:
(c) Monthly statements are mailed to all customers with outstanding balances.
Control:
(p) Total amounts posted to the accounts receivable ledger from remittance advices
are compared with the validated bank deposited slip.
Control:
(s) An employee other than the bookkeeper periodically prepares a bank
reconciliation.
Control:
(p) Total amounts posted to the accounts receivable ledger from remittance advices
are compared with the validated bank deposited slip.
Control:
(n) Goods returned for credit are approved by the supervisor of the sales department.