This document outlines key controls related to revenue recognition. It discusses the importance of separating duties around authorizing transactions, handling assets, and accounting. It also notes the need for authorization procedures and documentation for all transactions, as well as safeguarding assets and records. Finally, it stresses verifying that control activities are working as intended, such as through management review.
This document outlines key controls related to revenue recognition. It discusses the importance of separating duties around authorizing transactions, handling assets, and accounting. It also notes the need for authorization procedures and documentation for all transactions, as well as safeguarding assets and records. Finally, it stresses verifying that control activities are working as intended, such as through management review.
This document outlines key controls related to revenue recognition. It discusses the importance of separating duties around authorizing transactions, handling assets, and accounting. It also notes the need for authorization procedures and documentation for all transactions, as well as safeguarding assets and records. Finally, it stresses verifying that control activities are working as intended, such as through management review.
between authorisation of transactions, custody over the related assets and accounting for transactions? Consider: 1) Delivery of goods and services. 2) Invoicing. 3) Cash sales. 4) Returns.
Are authorisation procedures in
place? Consider: 1) Delivery of goods and services. 2) Invoicing. 3) Cash sales. 4) Returns.
Are documents and records kept for
all transactions? Consider: Completeness of recording of sales transactions. Proof of delivery. Invoicing. Cash sales. Returns. Recording in the correct accounting period. Are assets and records safeguarded? Consider: Proof of delivery. Evidence of goods returned. Cash.
Is there verification of the
effectiveness of control activities? Consider: Management review of records.