LA 1.3.1 - Revenue and receipts cycle 2 .pdf - Study Guide...

Study Guide
Department of Auditing
ODT 200
Auditing 200
2021
S
tudy Pack: Learning area 1.3.1
Business cycles:
Revenue and receipts cycle
Lecturer: Mr K Fouché
© Copyright reserved

2
ODT 200
Faculty of Economic and Management Sciences
 2021 University of Pretoria
Module specifications 3
Purpose statement 3
Learning presumed to be in place 3
Articulation with other modules in the programme 3
Module structure 4
Learning area 1.3.1 Revenue and receipts cycle
6
Specific learning outcomes 5
Cross-field outcomes 5
Assessment criteria 6
List of sources 9
Additional notes: 10
Nature of revenue transactions 11
General ledger account balances typically affected by
revenue transactions for a trading operation
12
Questions 13
Study component
Table of contents

3
ODT 200
Faculty of Economic and Management Sciences
 2021 University of Pretoria
Module specifications
Purpose statement
The purpose of this module is to provide you with some of the building
blocks towards a successful career as a professional accountant in business or a
professional accountant in public practice. The module starts off by introducing the
business environment including its internal controls, different business systems/cycles
as well as the King IV Report on Governance for South Africa 2016 to enable students
to fully understand the design, implementation and monitoring of a business
environment as well as the role of a professional accountant in business in this
environment. Hereafter the process to become a professional accountant in public
practice (an auditor), the ethical conduct relevant to the auditor and the Auditing
Profession Act will be focused on. Lastly, the auditor’s objectives and an introduction
to the audit process will be discussed.
Learning presumed to be in place
Auditing continues to build on the fundamentals of Accounting, which are
the annual financial statements of an entity. You should therefore have a thorough
knowledge of the principles of Accounting to be successful in your Auditing studies.
The required level of knowledge should be in place upon passing Business Accounting
in the 1 st year level.
Articulation with other modules in the programme
This module forms part of one of the four major undergraduate subjects
that have to be passed to obtain the BCom (Accounting Sciences) degree, i.e.
Auditing. Upon passing this degree, you may enrol for a Post Graduate Diploma in
Accounting Sciences and Certificate in the Theory of Accounting (CTA). Auditing is
also one of the four major subjects that form part of CTA. This module’s syllabus is
aligned with the education requirements prescribed by SAICA for the Initial Test of
Competence (ITC) and Assessment of Professional Test of Competence (APC)
exams.

4
ODT 200
Faculty of Economic and Management Sciences
 2021 University of Pretoria
Module structure
PART 1: BUSINESS ENVIRONMENT
Learning area 1.1
Introduction and
background to
CA (SA) & RA
 Business environment
 Characteristics of a profession
 Relationship between accounting and
auditing
 How to qualify as Chartered Accountant
[CA] (SA) and Registered Auditor (RA)
 SAICA and IRBA
 Codes of Professional Conduct of SAICA
and IRBA
 Publication literacy
 Time management
Learning area 1.2 Internal control
 Background to internal controls
 Computer controls

General controls

Application controls
Learning area 1.3 Business cycles
1.3.1 Revenue and receipts cycle