Audit Revenue Cycle

Front 1

Examining adequacy of allowances

Back 1

Accuracy/valuation

Front 2

Examine cash receipts for past due accounts

Back 2

Accuracy/valuation

Front 3

Agree pricing and terms to sales invoices and company policies

Back 3

Accuracy/valuation

Front 4

Recalculate schedules and totals

Back 4

Accurcy/valuation

Front 5

Confirm receivables and cash balance

Back 5

Existence/occurence

Front 6

Vouch sales invoices back to shipping documents and sales orders

Back 6

occurence

Front 7

Trace shipping docs back to sales invoices and sub ledger

Back 7

completeness

Front 8

Compare aged T/B and sub ledgers to GL

Back 8

completeness

Front 9

Inquire as to receivable pledges or leins

Back 9

Rights/obligations

Front 10

Review credit or loan agreements

Back 10

Rights/obligations

Front 11

Review factoring activity or agreements

Back 11

rights/obligations

Front 12

review special sales agreements

Back 12

rights/obligations

Front 13

Most likely to be detected by auditors review of clients sales cut off

Back 13

unrecorded sales for the year

Front 14

Negative confirmations are less effective than positive because

Back 14

auditor can't infer that all nonrespondents actually confirmed their balances

Front 15

In evaluating the adequacy of the allowance for doubtful accts an auditor most likely reviews the enity's aging of receivables to support management's assertion of

Back 15

valuation

Front 16

employees who maintain AR subsidiary ledger should not also approve

Back 16

Write offs of customer accounts

Front 17

Most likely to help ensure that all credit revenue transactions of an entity are recorded

Back 17

billing department supervisor matches prenumbered shipping documents with entries in the sales journal

Front 18

internal control that would be most likely to deter the lapping of collection from customers

Back 18

Segregation of duties between receiving cash and posting the accts rec ledger

Front 19

confirm a sample of accts rec and perform follow up procedures

Back 19

existence (of AR)

Front 20

Perform sales cut off tests

Back 20

Completeness

Front 21

examine invoice for credit approval

Back 21

accuracy

Front 22

compare pricing to approved price listing

Back 22

accuracy

Front 23

observe separation of duties

Back 23

occurence

Front 24

Examine evidence of manager's reivews of actual vs budget and follow up on unusual item

Back 24

occurence

Front 25

Examine paid vouchers for PAID stamps

Back 25

occurence

Front 26

Observe client checking sequence

Back 26

Completeness

Front 27

Examine contracts for authorization.

Back 27

accuracy

Front 28

observe client comparing receiving quantities and inspect documentary evidence of comparison

Back 28

accuracy

Front 29

compare date of receipt to date recorded in voucher journal

Back 29

cutoff

Front 30

confirm high risk accounts payable with vendors

Back 30

existence

Front 31

perform search for unrecorded liabilities

Back 31

completeness

Front 32

test mathmatical accuracy of payables listing

Back 32

valuation/allocation

Front 33

All PP&E are recorded

Back 33

completeness

Front 34

Two primary means of gathering evidence for PP&E are

Back 34

physical inspection (existence) and vouching

Front 35

perform search for unrecorded liabilities

Back 35

completeness

Front 36

test mathmatical accuracy of payables listing

Back 36

valuation/allocation

Front 37

All PP&E are recorded

Back 37

completeness

Front 38

Two primary means of gathering evidence for PP&E are

Back 38

physical inspection (existence) and vouching