PRELIMINARY REVIEW BEFORE AUDIT

“SALES AND COLLECTION CYCLE”

Audit stages
Purpose of audit in the interim audit
Purpose of audit in year end-audit
Audit segmentation into cycles

1
AUDIT STAGES IN GENERAL AUDIT
Question:
Do all of the stages in the
audit of sales and collection
cycle be done?

Source; Arens et al. (2017)

2
PURPOSE OF INTERIM AUDIT AND YEAR-END AUDIT

• Difference focus in interim audit and year-end audit

• Concept of transaction related audit objectives and
balance related audit objectives
• Purpose of substantive test of transaction and
test of controls

3
AUDIT SEGMENTATION- PURPOSE AND GOALS

Source; Arens et al. (2017)