TAILIEUCHUNG - Lecture Auditing & assurance services (5th edition) - Chapter 7: Revenue and collection cycle

Chapter 7 - Revenue and collection cycle. In this chapter, the learning objectives are: Discuss inherent risks related to the revenue and collection cycle with a focus on improper revenue recognition describe the revenue and collection cycle, including typical source documents and control procedures; give examples of tests of controls over customer credit approval, delivery, and accounts receivable accounting;. | Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Learning Objectives Discuss inherent risks related to the revenue and collection cycle with a focus on improper revenue recognition Describe the revenue and collection cycle, including typical source documents and control procedures. Give examples of tests of controls over customer credit approval, delivery, and accounts receivable accounting Give examples of substantive procedures in the revenue and collection cycle and relate them to assertions about account balances at the end of the period. Describe some common errors and frauds in the revenue and collection cycle, and design some audit and investigation procedures for detecting them. Chapter 07 Revenue and Collection Cycle 7- Overall Audit Approach INHERENT RISKS: Improper Revenue Recognition Cut-off Bill and Hold Channel Stuffing Returns and Allowances Collectibility of Receivables 7- Revenue Recognition Must be (1) realized or realizable and (2) earned SEC guidance (SAB 104) Persuasive evidence of an arrangement exists, Delivery has occurred or services have been rendered, The seller's price to the buyer is fixed or determinable, and Collectibility is reasonably assured 7- REVENUE AND COLLECTION CYCLE: Key Control Procedures SEGPARATION OF DUTIES Separate functions for recording, authorization, custody AUTHORIZATION OF TRANSACTIONS Write-offs EDI transactions Credit checks prior to approval of sale Pricing ACCESS TO ASSETS Shipping department Lock box account ADEQUATE DOCUMENTS AND RECORDS Pre-numbered sales orders, shipping documents (bills of lading), sales invoices Remittance advice INDEPENDENT CHECKS ON PERFORMANCE A/R subsidiary ledger to general ledger Monthly statement to customer 7- Audit Evidence in Management Reports and Data Files Pending order master file Credit check/approval files Price list master file Sales detail file (sales journal) Sales analysis report Accounts .

• Kế toán - Kiểm toán
• Inherent risks
• Assurance services
• Auditing services
• Financial statement audit
• Contemporary auditing environment
• Collection cycle
• International Trade
• Commercial Banks
• Open Account
• Exchange Rates
• Auditing and assurance services
• Auditing environment
• Cash conversion cycle
• Measure of liquidity of the organizations
• Raw materials and collection of cash
• Study on FMCG sector
• Cash Conversion Cycle and Cash Holding
• Expenditure cycle
• Control procedures
• Effect of temperature on the life cycle
• Predatory capacity
• Micraspis Discolor Fabricius
• Collection and mass culture
• Developmental stages of M discolor
• Overall audit plan
• Accounts receivable
• Substantive tests
• Audit sampling
• Accounts payable
• Project management
• Project management in practice
• Controlling the project
• Monitoring the project
• Plan monitor control cycle
• Data collection
• Project control
• Frau dauditing
• The impact of information technology
• Audit program
• Lecture Entrepreneurship
• Social entrepreneurship coverage
• Social enterprises
• Entrepreneurial selling
• Internal funds sources
• Cash collection cycle