AuditoftheSalesandCollectionCycle(英文版)(ppt44页)课件.pptVIP

Audit of the Sales andCollection Cycle Chapter 13 Revenue and Collection Cycle Receiving and processing orders (granting credit) Delivering goods and services to customers Billing and recording of accounts receivable Collecting and depositing customer payments Bank reconciliation Accounts include: Accounts Receivable Sales Cash - cash receipts Allowance for Doubtful Accounts Bad Debts Sales returns and allowances Sales Discounts Accounts in the Salesand Collection Cycle Accounts in the Salesand Collection Cycle Segregation of Duties Sales and credit authorization Custody of goods and cash Record keeping for sales, receivables and inventory Bank reconciliation Control Activities Fidelity bond on persons handling cash No sales entered without a customer order Credit authorization Restricted access to: Inventory/cash Billing terminals Blank invoices Sales recorded as of shipping date Cash receipts on date received Control Activities Customer invoice checked for: Proper price Quantity shipped=billed Pending order file reviewed – completeness Bank reconciliation monthly Sales returns and adjustments authorization and processing Bad debt write-offs authorization Special Audit Considerations Receivable are required to be confirmed by GAAS Auditor can chose not to confirm receivables if: Receivables are immaterial Confirmations are unreliable Confirmations help prove existence Existence – risk of overstating of revenues Confirmations Positive and Blank Confirmations Used for large individual balances Better evidence Must get all responses Negative Confirmations Used for large numbers of small balances And when IR and CR are low Response rates Bank Reconciliation Cutoff bank statement – confirms reconciling items Lapping of customer accounts- Segregation of duties Trace daily remittance to customer posting Check Kiting controls - interbank transfer schedule Processing Customer Orders Granting Credit Sales Transaction Cash Receipts Transaction Sales Returns and Allow