6/7/8: Revenue, Purchases, Employees

Question 1

The 5 key risk areas to the revenue system (sales)?

Answer 1

Order taken
Goods despatched
Invoice raised
Sale recorded
Cash collected

Question 2

3 basic tests of controls?

Answer 2

Making enquiries

Observation of processes

Inspection of assets or documents

Question 3

The 5 key risk areas to purchases system (buying)?

Answer 3

Order placed

Goods received

Invoice received

Purchase recorded

Cash paid

Question 4

What are the 3 steps to employee costs system (and the subsequent 3 risk areas)?

Answer 4

1. Calculate wages and salaries
2. Record wages and salaries
3. Pay wages and salaries

Process includes both standing data and variable data