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Revenue Cycle

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Revenue Cycle
TEST OF CONTROLS – REVENUE TRANSACTIONS

|Audit Objective |Audit procedure |Findings |
|General | | |
|Validity |Observe & evaluate proper segregation of duties between: |Since it not possible for you to observe anything here, think about why the segregation |
|(to find out whether there are | |of duties is important. |
|fictitious sales, or incidences | | |
|whereby sales is recorded but |shipping function & the order entry & billing functions. |Unauthorised shipments to fictitious customers without going through the billing control|
|goods not shipped/services not | |procedures ( unrecorded sales transactions & theft of goods. |
|performed) | | |
| | |Sales can be made to customers who are not creditworthy. |
| |credit & billing functions.
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