AUDCISE (Assignment 1.

4)
What computerized techniques will you apply to perform test of controls of the
revenue recognition process of the company considering that they use POS?

Automated Reconciliation Tools

These are software solutions designed to streamline and automate the
reconciliation process between different sets of financial or operational data.
Automated reconciliation tools can be utilized in the revenue recognition process
for a company with POS through sales and revenue matching, inventory and sales
reconciliation etc.

System-generated Reports Review

System-generated reports review helps auditors or internal control assessors ensure
the accuracy, completeness, and reliability of the information processed through
the POS system. Review of system-generated reports can be utilized through sales
transaction verification and sales reconciliation.

helps ensure that all relevant sales transactions are captured and accounted for.

provide a detailed record of transactions processed through the POS system.

Reviewing these reports ensures that sales, discounts, and other transaction
details are accurately recorded, reducing the risk of errors in revenue
recognition.

Electronic Confirmation Requests

Use electronic confirmation requests to independently verify sales transactions
with customers directly. This can help confirm the legitimacy of revenue
recognition and identify any discrepancies.

If you plan to rely on ITGC, what is the effect on your test of automated
transaction level controls? Give an example of transaction level automated control
related to POS which you will plan to rely on.