Revenue&Expenditure_Cycle

Revenue&Expenditure_Cycle - custody &...

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Revenue Cycle Threat Control Properly Authorized Is it Valid Was it Recorded Recorded Correctly Asset Safe Efficiency Effectiveness Sales Order 1. Incomplete sales order Inaccurate sales order Data control O 2. Credit sales to customer With poor credit Credit checks approved by credit manager- Segregation of duties O 3. Sales order legitimate Authorized by customer signature O O 4. Stock outs Perpetual inventory system O O Shipping – fulfilling order - Safeguarding assets 5. Shipping errors - wrong made - wrong quantity - wrong address Reconcile sales order to packing slips (use barcode scanners) O 6. Theft Restrict access document inventory Transfers. Segregation of duties - Custody/Recording O Invoice Customer - Invoice customer -Invoice correct 7. Customer doesn’t receive invoice Pre-numbering Reconciling – Sales order -Shipping Doc/Invoice O 8. Billing error Data entry checks O 9. Posting error O Cash collections -Safeguard cash 10. Theft of cash Cash collections of Authorized. -Write off bad debt, so
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Unformatted text preview: custody & Authorized Segregation Segregation of Duties Lock Box (a postal address at bank to which customers send their remittances) O Expenditure Cycle Threat Control Properly Authorized Recorded Correctly Asset Safe Efficiency Effectiveness Order the Goods O 1. Stock outs Perpetual inventory system O 2. Unnecessary inventory Perpetual O 3. Pay too much Price lists (competitive bid) O 4. Quality (bad) List of supplies O 5. Unauthorized vendor PO is approved by authorized O 6. Kickbacks Policy/Training supplier audit O Receive Goods 7. Receive goods that werent order Access goods with PO O 8. Error in counting goods Barcode incentives 9. Theft Physical controls Segregation of Duties Approve invoice & pay O 10. Error in invoice Account do checks for accuracy 11. Pay for goods not received Match invoice Invoice to receiving report 12. Failing to take Budgeting 13. Paying the same invoice Cancelling & pay original O...
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Revenue&Expenditure_Cycle - custody &...

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