ACCT 644 GP 4 - ACCT644-1503B-01 Management Control and...

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ACCT644-1503B-01 Management Control and Auditing Phase 4 Group Project 09/12/15 Dr. Willis Jordan Darius White
For the audit of cash receipt cycle and sales of Bovar Company There were 15,000 invoices totalling $122 M in sales. Unauthorized discounts applied to invoices, credit terms applied to invoices may be incorrect, and unaccounted for invoice sequence numbering may be present. This is an area of concern for our audit firm. We propose to undertake detailed substantive procedures for the same. The chart that follows on the next page shows the audit objective; the assertions to be checked; the list of internal controls that the company needs to implement; the tests for such controls; and finally the substantive procedures to be followed to test the genuineness of the transactions. Bovar’s revenue is identified and recognized at the point shipment for its products and goods. Bovar’s sales cycle is comprised of an order receipt, credit check, manufacturing of goods,

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