Revenue Cycle Flashcards
(18 cards)
1
Q
Incomplete/Inaccurate orders
A
- Data entry edit controls
- Restrict access to master data
2
Q
Invalid orders
A
- Digital or written signatures
- Acknowledge and confirm
3
Q
Uncollectible accounts
A
- Credit evaluation, approval and limits
- Prepare and review AR Aging
- Aggressively pursue past due accounts
4
Q
Stockouts or excess inventory
A
- Perpetual inventory system
- Bar code, RFID, automated handling
- Physical counts of inventory - reconcile
- Sales forecasts integrated with production
5
Q
Loss of customers
A
- Best in class customer service (CRM, self-help websites, “customer comes first”
6
Q
Pick wrong item or quantity
A
- Bar-code, RFID, automated handling
- Reconcile packing list to sales order
7
Q
Theft of inventory
A
- Restrict access to physical items
- Document inventory transfers - both sides sign
- Physical counts of inventory - reconcile
8
Q
Shipping errors
A
- Reconcile docs: sales order, picking slips, packing slips
- Account for pre-numbered documents
- Data entry automation and edit checks
- Application control checks for duplicate orders
9
Q
Failure to bill
A
- Segregation of duties: bill, record, adjustments
- Reconcile invoice, sales order, picking tickets, shipping documents
- Account for pre-numbered documents
10
Q
Billing Errors
A
- Use software to create invoice based on sales order price and quantity shipped
- Restrict access to pricing data
11
Q
Posting errors in AR
A
- Data entry edit controls
- Integrate posting with ERP/AIS software
- Mail monthly statements to customers
- Reconcile AR Subsidiary Ledger to GL
12
Q
Inaccurate or invalid credit memos
A
- Segregate approval to credit manager
- Application control requires evidence of return or specific authorization
13
Q
Theft of cash
A
- Segregation of Duties: cash and AR
- Reconcile bank account to GL - Independent person
- Eliminate cash handling: EFT, FEDI, lockboxes
- Immediately endorse checks
- Count cash and compare to point of sale or transaction report - Independent person
- Point of sale systems
- Daily deposits at bank
14
Q
Cash Flow Problems
A
- Cash flow budgets and actuals
- Follow-up on past due AR
- Discounts for prompt payment
- EFT, FEDI, lockboxes, credit cards
15
Q
Invalid or inaccurate master data
A
- Restrict access - Segregation of Master File changes and recording
- Data entry and processing controls
- Review all master file changes
16
Q
Unauthorized disclosure of sensitive information
A
- Chapters 7&8: encryption, access controls, authorization controls
17
Q
Loss or destruction of data
A
- Chapters 7&8: disaster recovry plan , offsite backups, insurance
18
Q
Poor performance
A
- Hire competent people and train them
- Performance reports to identify non-conformance
