SMU Classification: Restricted

ACCT221 AIS
2021-22 S2 – Revenue Cycle

© SP. For students taking ACCT221 in 2021-22 Term 2. Not for sharing or circulating. 1
 SMU Classification: Restricted

© SP. For students taking ACCT221 in 2021-22 Term 2. Not for sharing or circulating. 2
 SMU Classification: Restricted

© SP. For students taking ACCT221 in 2021-22 Term 2. Not for sharing or circulating. 3
 SMU Classification: Restricted

© SP. For students taking ACCT221 in 2021-22 Term 2. Not for sharing or circulating. 4
 SMU Classification: Restricted

© SP. For students taking ACCT221 in 2021-22 Term 2. Not for sharing or circulating. 5
 SMU Classification: Restricted

© SP. For students taking ACCT221 in 2021-22 Term 2. Not for sharing or circulating. 6
 SMU Classification: Restricted

© SP. For students taking ACCT221 in 2021-22 Term 2. Not for sharing or circulating. 7
 SMU Classification: Restricted

© SP. For students taking ACCT221 in 2021-22 Term 2. Not for sharing or circulating. 8
 SMU Classification: Restricted

Control Goals of the Validate Sales Order Process

Control Goals of the Operations Process Control Goals of the
Information Process
Ensure Ensure
effectiveness of security of For
operations by Ensure resources
achieving the efficient  Inventory Customer order inputs,
following employment  Sales order ensure
operations process of resources master
goals: Cash, AR
Recommended Control Plans A B master IV IC IA
Check if there is sufficient
 P-1 
inventory to fulfil order quantity

Check customer credit  P-2  

Acknowledge customer orders M-1 M-1  

Limit access to master data stores 

IV = input validity Key:

IC = input completeness A = Promptly accept all orders from only customers who can pay
IA = input accuracy B = Provide a pleasant experience to customers
UC = update completeness
UA = update accuracy

© SP. For students taking ACCT221 in 2021-22 Term 2. Not for sharing or circulating. 9
 SMU Classification: Restricted

Control Goals of the Pick and Pack Process

Control Goals of the Operations Process Control Goals of the
Information Process
Ensure
effectiveness of Ensure For
operations by Ensure security of
achieving the efficient resources Picking ticket inputs, ensure
following employment  Inventory
operations process of resources Cash, AR
goals: master
Recommended Control Plans A B IV IC IA
Independent picking
  
authorization

Match picking ticket with physical

 P-2   
goods

Review open sales orders M-1 M1 -

Sign picking ticket after

M-1 M-1 
completing pick

Restrict access to warehouse -

IV = input validity Key:

IC = input completeness A = Correctly and promptly pick only items that are ordered by customers
IA = input accuracy B = nil
UC = update completeness
UA = update accuracy

© SP. For students taking ACCT221 in 2021-22 Term 2. Not for sharing or circulating. 10
 SMU Classification: Restricted

Control Goals of the Shipping Process

Control Goals of the Operations Process Control Goals of the
Information Process
Ensure
effectiveness of Ensure For
operations by Ensure security of  Sales order
achieving the efficient resources  Completed picking
following employment  Inventory ticket
operations process of resources Cash, AR inputs, ensure
goals: master
Recommended Control Plans A B IV IC IA
Independent shipping
  
authorization

Three-way, one-for-one match of

sales order, completed picking  P-2   
ticket and physical goods

Turnaround document (picking

M-1  M-1  
ticket)

Review of SO tickler file  M-2 

Restrict access to warehouse 

IV = input validity Key:

IC = input completeness A = Correctly and promptly ship only items that are ordered by customers
IA = input accuracy
UC = update completeness B = nil
UA = update accuracy

© SP. For students taking ACCT221 in 2021-22 Term 2. Not for sharing or circulating. 11
 SMU Classification: Restricted

Control Goals of the Billing Process

Control Goals of the Operations Process Control Goals of the
Information Process
Ensure
Ensure
effectiveness of For
security of
operations by Ensure  Sales order
resources
achieving the efficient  Shipping notice
 Accounts
following employment  Customer data
Receivable
operations process of resources inputs, ensure
Cash, AR
goals:
Recommended Control Plans A master IV IC IA
B
Compare shipping notice with
 1  
sales order

Review SO that are not invoiced  P-2  

M-1 M-1

M-2

IV = input validity Key:

IC = input completeness A = Correctly and promptly bill customers for shipments made to fulfil
IA = input accuracy their orders
UC = update completeness
UA = update accuracy

© SP. For students taking ACCT221 in 2021-22 Term 2. Not for sharing or circulating. 12
 SMU Classification: Restricted

Control Goals of the Receive Payment Process

Control Goals of the Operations Process Control Goals of the
Information Process
Ensure
effectiveness of Ensure For
operations by Ensure security of
achieving the efficient resources Remittance advice inputs,
following employment  Cash ensure
operations process of resources Cash, AR
goals: master
Recommended Control Plans A B IV IC IA
Compare cash receipt with
 
remittance advice

Immediately endorse cash receipt P-2 

Deposit cash receipts on the

M-1 M-1
same day they are received

Bank reconciliation by
    
independent staff

IV = input validity Key:

IC = input completeness A = Collect correct amount of cash and deposit them promptly
IA = input accuracy
UC = update completeness B = nil
UA = update accuracy

© SP. For students taking ACCT221 in 2021-22 Term 2. Not for sharing or circulating. 13