1. Identify 5 different ways in which errors might occur in any of the revenue cycle subprocesses (accidential or intentional) that affect the precision and accuracy of the accounting for the revenue cycle. 2. Identify 2 ways in which the internal controls of each subprocess (Order Entry, Fill and Ship, Billing, Cash Receipt, Sales Returns) could be improved to minimize loss of assets (inventory, finished goods, cash) or fraud. These internal controls may relate directly to the errors you identified in part 1 or may be unrelated. 1. Possible errors: a. An unintentional mistake when entering sales order by an employee, caused by carelessness or bad handwriting on the source document. This could alter the quantity or agreed price. b. If inventory control is slow to update the inventory, the sales order entry clerk could send an order through without sufficient inventory and without creating a
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This note was uploaded on 10/20/2011 for the course ACC 321 taught by Professor Dunn during the Spring '11 term at Michigan State University.