Assertion and Related Control Activity - Revenue Transactions Flashcards Preview

Auditing and Attestation > Assertion and Related Control Activity - Revenue Transactions > Flashcards

Flashcards in Assertion and Related Control Activity - Revenue Transactions Deck (18)
Loading flashcards...
1

Occurrence - Sales recorded only with approved customer order and shipping document.

Test a sample of sales invoices for the presence of authorized customer order and shipping document.

2

Occurrence - Accounting for numerical sequences of sales invoices.

Review and test client procedures for accounting for numerical sequence of sales invoices.

3

Occurrence - Monthly customer statements; complaints handled independently.

Review and testing of client procedures for mailing and handling complaints about monthly statements.

4

Completeness - Accounting for numerical sequences of shipping documents and sales invoices.

Review and test client's procedures for accounting for numerical sequence of shipping documents and sales invoices.

5

Completeness - Shipping documents matched to sales invoices.

Tracing of a sample of shipping documents to their respective sales invoices and to the sales journal.

6

Completeness - Sales invoices reconciled to daily sales report.

Testing of a sample of daily reconciliations.

7

Completeness - An open-order file that is maintained currently and reviews periodically.

Examination of the open-order file for unfilled orders.

8

Authorization - Proper procedures for authorizing credit and shipment of goods.

Review of client's procedures for granting credit. Examination of sales orders for evidence of proper credit approval.

9

Authorization - Authorized price list and specified terms of trade.

Comparison of prices and terms on sales invoices to authorized price list and terms of trade.

10

Accuracy - Authorized price list and specified terms of trade.

Comparison of prices and terms on sales invoices to authorized price list and terms of trade.

11

Accuracy - Each sales invoice agreed to shipping document and customer order for product type and quantity; mathematical accuracy of sales invoice verified.

Examination of sales invoice for evidence that client personnel verified mathematical accuracy. Recompilation of the information on a sample of sales invoices.

12

Accuracy - Sales invoices reconciles to daily sales report.

Examination of reconciliation of sales invoices to daily sales report.

13

Accuracy - Daily posting to sales journal reconciled with posting to subsidiary ledger

Examination of reconciliation of entries to sales journal with entries to subsidiary ledger.

14

Accuracy - Subsidiary ledger reconciled to general ledger control account

Review of reconciliation of subsidiary ledger to general ledger control account.

15

Cutoff - All shipping documents forwarded to the billing function daily.

Comparison of the dates on sales invoices with the dates of the relevant shipping documents.

16

Cutoff - Daily billing of goods shipped

Comparison of the dates on sales invoices with the dates they were recorded in the sales journal.

17

Classification - Chart of accounts

Review of sales journal and general ledger for proper classification

18

Classification - Proper codes for different types of products or services

Examination of sales invoices for proper classification.