Seminar Number 3 - Unit 5 - Seminar 3 Unit 5 What was discussed in this final session was the revenue cycle Selling of goods as well as collecting money

Seminar Number 3 - Unit 5 - Seminar 3 Unit 5 What was...

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Seminar # 3 - Unit # 5 What was discussed in this final session was the revenue cycle. Selling of goods as well as collecting money for it. Collection of A/R, Returns and allowances, and write off for bad debt. Develop Audit Objectives which talks about occurrence with sales, receipts and adjustments. Completeness which is recorded, accuracy, cutoff and classification. Inherent risk and fraud was the next topic we discussed and it deals with management misstatement of revenue, overstate revenue, overstate cash, and also understate allowance. Other misstatement factors – opportunities for error, timing, misclassification and adjustment to transactions. Consideration of control components – which involves control environment, risk assessment, information and communication, monitoring and initial assessments of control risk. Cash receipts transactions – Remittance advice, prelist, cash count sheets, daily cash summary, validated deposit slips, cash receipt transaction file and cash receipts journal.
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Unformatted text preview: Sales Adjustments and Controls – Grant cash discounts, grant sales returns and allowances, determining uncollectable accounts, other controls and fnally tests oF controls. Expenditure cycle – Inventory, raw materials, prepaid expenses and assets. ³ormula: Beginning Inventory + purchases – ending inventory = cost oF goods sold ProducTon cycle – Labor cost distribuTon summary, payroll tax returns, employee personnel fle, personnel data master fle and employee earnings master fle. Web ´rust – privacy pracTces, transacTon integrity and inFormaTon protecTon. OperaTonal AudiTng – systemaTc process, evaluaTng operaTons and e±ecTveness, eµciency and economy oF operaTons. ReporTng to upper management or department heads and recommendaTons. Phases oF an operaTonal audit Select Auditee Plan PerForm Report fndings PerForm Follow-up...
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  • Summer '14
  • Revenue, Tax Returns, Financial audit, CASH RECEIPTS JOURNAL

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