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    Study Unit 2

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    Zance Jordaan
    The document discusses the revenue and receipt cycle, including its key functions such as receiving customer orders, sales authorization, credit management, invoicing, and recording payments from debtors. It also covers internal controls and risks for a cash sale system, noting physical safeguards to protect cash and employees, independent records of all sales, limits on cash on hand, documented cash transfers, and regular banking of cash as important controls. Key risks include theft and collusion.

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    Study Unit 2

    Uploaded by

    Zance Jordaan
    4 views2 pages
    The document discusses the revenue and receipt cycle, including its key functions such as receiving customer orders, sales authorization, credit management, invoicing, and recording payments from debtors. It also covers internal controls and risks for a cash sale system, noting physical safeguards to protect cash and employees, independent records of all sales, limits on cash on hand, documented cash transfers, and regular banking of cash as important controls. Key risks include theft and collusion.

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    EAGR271 Opsommings

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    Study unit 2

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    The document discusses the revenue and receipt cycle, including its key functions such as receiving customer orders, sales authorization, credit management, invoicing, and recording payments from debtors. It also covers internal controls and risks for a cash sale system, noting physical safeguards to protect cash and employees, independent records of all sales, limits on cash on hand, documented cash transfers, and regular banking of cash as important controls. Key risks include theft and collusion.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    4 views2 pages

    Study Unit 2

    Uploaded by

    Zance Jordaan
    The document discusses the revenue and receipt cycle, including its key functions such as receiving customer orders, sales authorization, credit management, invoicing, and recording payments from debtors. It also covers internal controls and risks for a cash sale system, noting physical safeguards to protect cash and employees, independent records of all sales, limits on cash on hand, documented cash transfers, and regular banking of cash as important controls. Key risks include theft and collusion.

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    © All Rights Reserved
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    Study unit 2

    Revenue and receipt cycle


    Chapter 10

    Cycles functions:

    1. REVEIVING OF CUSTOMER ORDERS


    2. SALES AUTHORIZATION
    3. CREDIT MANAGEMENT
    4. WAREHOUSE
    5. DISPATCH
    6. INVOICING
    7. RECORDING OF SALES AND DEBTOR
    8. RECIEPTS MAILROOM / CASHIER
    9. RECORDING PAYMENTS FROM DEBTORS
    10. GOODS RETURN BY CUSTOMERS
    Refer to chapter 10 – risk and controls

    Cash sale system:

    Internal control
    ❖ Physical safeguards – to protect cash registers and employees and to prevent theft
    ▪ Limited entry and exit points
    ▪ Cash not held on employee’s person
    ▪ Security guards and camera surveillance
    ▪ Signage should encourage customers to request receipt
    ❖ Independent record of every sale
    ▪ Not be alterable
    ▪ Number sequenced
    ❖ Cash on hand should be limited
    ▪ Not be allowed to accumulate
    ❖ When cash is transferred it should be
    ▪ Counted
    ▪ Reconciled
    ▪ Documented
    ▪ Signed
    ❖ Cash should be banked regularly

    Risks
    ▪ Theft
    ▪ Collusion

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