AUD 3 Internal Control 12 - Operating / Revenue Cycle Flashcards
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
Operating Cycles and the Flow of Transactions
An auditor divides the au___ down into different cycles that make up the flow of transactions for the entire company.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cy___s that make up the flow of transactions for the entire company.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the f___ of transactions for the entire company.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of tran________s for the entire company.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are au___ed together.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited together.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All re___ed accounts within each cycle are audited together.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited together.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cy___ are audited together.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited together.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts with__ each cycle are audited together.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited together.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited toge____.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited together.
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited together.
Within each cy___, the auditor is concerned with
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited together.
Within each cycle, the auditor is concerned with
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited together.
Within each cycle, the auditor is con____ed with
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited together.
Within each cycle, the auditor is concerned with
Operating Cycles and the Flow of Transactions
Within ea__ cycle, the auditor is concerned with
what each specific employee does,
Operating Cycles and the Flow of Transactions
Within each cycle, the auditor is concerned with
what each specific employee does,
Operating Cycles and the Flow of Transactions
Within each cycle, the auditor is concerned with
what each specific em____ee does,
Operating Cycles and the Flow of Transactions
Within each cycle, the auditor is concerned with
what each specific employee does,
Operating Cycles and the Flow of Transactions
Within each cycle, the auditor is concerned with
what each specific employee does,
the doc______s they handle
Operating Cycles and the Flow of Transactions
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
Operating Cycles and the Flow of Transactions
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they han___
Operating Cycles and the Flow of Transactions
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
Operating Cycles and the Flow of Transactions
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
and how each document re___es to the segregation of ARCC’S
Operating Cycles and the Flow of Transactions
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
and how each document relates to the segregation of ARCC’S
Operating Cycles and the Flow of Transactions
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
and how each do______ relates to the segregation of ARCC’S
Operating Cycles and the Flow of Transactions
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
and how each document relates to the segregation of ARCC’S
Operating Cycles and the Flow of Transactions
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
and how each document relates to the segregation of ARCC’S (Authorization, Recording, Custody and Comparison).
Operating Cycles and the Flow of Transactions
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
and how each document relates to the segregation of ARCC’S (Authorization, Recording, Custody and Comparison).
ARCC = Authorization, Recording, Custody and Comparison
Operating Cycles and the Flow of Transactions
ARCC = Authorization, Recording, Custody and Comparison
ARCC =
- Authorization,
- Recording,
- Custody
- Comparison
Operating Cycles and the Flow of Transactions
ARCC = Authorization, Recording, Custody and Comparison
ARCC =
- Aut________,
- Recording,
- Custody
- Comparison
Operating Cycles and the Flow of Transactions
ARCC = Authorization, Recording, Custody and Comparison
ARCC =
- Authorization,
- Rec______,
- Custody
- Comparison
Operating Cycles and the Flow of Transactions
ARCC = Authorization, Recording, Custody and Comparison
ARCC =
- Authorization,
- Recording,
- Cus____
- Comparison
Operating Cycles and the Flow of Transactions
ARCC = Authorization, Recording, Custody and Comparison
ARCC =
- Authorization,
- Recording,
- Custody
- Com________
Operating Cycles and the Flow of Transactions
ARCC = Authorization, Recording, Custody and Comparison
ARCC =
- Auth________,
- Rec_______,
- Custody
- Comparison
ARCC =
- Authorization,
- Recording,
- Custody
- Comparison
ARCC =
- Authorization,
- Recording,
- Cus____
- Comp______
ARCC =
- Authorization,
- Recording,
- Custody
- Comparison
ARCC =
- Auth________,
- Rec_______,
- Cus____
- Comp______
ARCC =
- Authorization,
- Recording,
- Custody
- Comparison
ARCC =
ARCC =
- Authorization,
- Recording,
- Custody
- Comparison
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited together.
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle and
how each document relates to the segr_________ of ARCC’S (Authorization, Recording, Custody and Comparison).
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited together.
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle and
how each document relates to the segregation of ARCC’S (Authorization, Recording, Custody and Comparison).
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited together.
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle and
how each document relates to the segregation of A____’S (Authorization, Recording, Custody and Comparison).
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited together.
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle and
how each document relates to the segregation of ARCC’S (Authorization, Recording, Custody and Comparison).
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited together.
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle and
how each document relates to the segregation of ARCC’S (Authorization, Recording, Custody and Comparison).
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited together.
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle and
how each document relates to the segregation of ARCC’S (Authorization, Recording, Custody and Comparison).
Operating Cycles and the Flow of Transactions
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle and
how each document relates to the segregation of ARCC’S (Authorization, Recording, Custody and Comparison).
Con____s have a function of either Preventing misstatements before they occur
Operating Cycles and the Flow of Transactions
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle and
how each document relates to the segregation of ARCC’S (Authorization, Recording, Custody and Comparison).
Controls have a function of either Preventing misstatements before they occur (most effective)
Operating Cycles and the Flow of Transactions
Controls have a function of either Pre____ing misstatements before they occur (most effective)
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements be____ they occur (most effective)
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they oc___ (most effective)
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effe_____)
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
or Det____ng and Correcting misstatements
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
or Detecting and Cor____ing misstatements
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements that have already occ____d
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements that have already occurred
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements that have a____dy occurred
(less expensive to implement, but could detect too late).
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements that have already occurred
(less expensive to implement, but could detect too late).
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements that have already occurred
(le__ expensive to implement, but could detect too late).
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements that have already occurred
(less expensive to implement, but could detect too late).
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements that have already occurred
(less expen____ to implement, but could detect too late).
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements that have already occurred
(less expensive to implement, but could detect too late).
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements that have already occurred
(less expensive to implement, but could de____ too late).
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements that have already occurred
(less expensive to implement, but could detect too late).
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements that have already occurred
(less expensive to implement, but could detect too la__).
Operating Cycles and the Flow of Transactions
Controls have a function of either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements that have already occurred
(less expensive to implement, but could detect too late).
Operating Cycles and the Flow of Transactions
Controls have a function of
either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements that have already occurred (less expensive to implement, but could detect too late).
Operating Cycles and the Flow of Transactions
Controls have a function of
either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements that have already occurred (less expensive to implement, but could detect too late).
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited together.
Within each cycle, the auditor is concerned with what each specific employee does, the documents they handle and how each document relates to the segregation of ARCC’S (Authorization, Recording, Custody and Comparison).
Controls have a function of either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements that have already occurred (less expensive to implement, but could detect too late).
Operating Cycles and the Flow of Transactions
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
All related accounts within each cycle are audited together.
Within each cycle, the auditor is concerned with what each specific employee does, the documents they handle and how each document relates to the segregation of ARCC’S (Authorization, Recording, Custody and Comparison).
Controls have a function of either Preventing misstatements before they occur (most effective)
or Detecting and Correcting misstatements that have already occurred (less expensive to implement, but could detect too late).
Operating Cycles and the Flow of Transactions
In obtaining an unde______ding of an entity’s internal control,
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control,
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control,
the auditor will id____ify the different types of transactions or events
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different t___s of transactions or events
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or ev___s
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that occur on an on__ing basis
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that occur on an ongoing basis
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that occur on an ongoing basis and
that af____ the entity’s operations or its financial position.
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that occur on an ongoing basis and
that affect the entity’s operations or its financial position.
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that occur on an ongoing basis and
that affect the entity’s ope_______s or its financial position.
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that occur on an ongoing basis and
that affect the entity’s operations or its financial position.
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that occur on an ongoing basis and
that affect the entity’s operations or its fin______ position.
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that occur on an ongoing basis and
that affect the entity’s operations or its financial position.
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of tran_______s or events
that occur on an ongoing basis and
that affect the entity’s operations or its financial position.
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that occur on an ongoing basis and
that affect the entity’s operations or its financial position.
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control, the auditor will identify the different types of transactions or events that occur on an ongoing basis and that affect the entity’s operations or its financial position.
The auditor will then ob____ an understanding of various components
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control, the auditor will identify the different types of transactions or events that occur on an ongoing basis and that affect the entity’s operations or its financial position.
The auditor will then obtain an understanding of various components
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control, the auditor will identify the different types of transactions or events that occur on an ongoing basis and that affect the entity’s operations or its financial position.
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control, the auditor will identify the different types of transactions or events that occur on an ongoing basis and that affect the entity’s operations or its financial position.
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control, the auditor will identify the different types of transactions or events that occur on an ongoing basis and that affect the entity’s operations or its financial position.
The auditor will then obtain an understanding of various components and in particular:
• (St\_\_\_) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control, the auditor will identify the different types of transactions or events that occur on an ongoing basis and that affect the entity’s operations or its financial position.
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control, the auditor will identify the different types of transactions or events that occur on an ongoing basis and that affect the entity’s operations or its financial position.
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Auth\_\_\_\_\_\_ • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control, the auditor will identify the different types of transactions or events that occur on an ongoing basis and that affect the entity’s operations or its financial position.
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control, the auditor will identify the different types of transactions or events that occur on an ongoing basis and that affect the entity’s operations or its financial position.
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Comp\_\_\_\_\_\_ or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control, the auditor will identify the different types of transactions or events that occur on an ongoing basis and that affect the entity’s operations or its financial position.
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Reco\_\_\_\_\_ • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Eva\_\_\_\_\_ Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Def\_\_\_\_\_\_) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a g__d system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
It should be easy to remember that a good system of internal con____ is SACRED to a business.
Operating Cycles and the Flow of Transactions
It should be easy to remember that a good system of internal control is SACRED to a business.
It should be easy to remember that a good system of internal control is SA_____ to a business.
Operating Cycles and the Flow of Transactions
It should be easy to remember that a good system of internal control is SACRED to a business.
It should be easy to remember that a good system of inte____ control is SACRED to a business.
Operating Cycles and the Flow of Transactions
It should be easy to remember that a good system of internal control is SACRED to a business.
It should be easy to remember that a good system of internal control is SA__ED to a business.
Operating Cycles and the Flow of Transactions
It should be easy to remember that a good system of internal control is SACRED to a business.
It should be easy to remember that a good system of internal control is __CRED to a business.
Operating Cycles and the Flow of Transactions
It should be easy to remember that a good system of internal control is SACRED to a business.
It should be easy to remember that a good sys___ of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
It should be easy to remember that a good system of internal control is SACRED to a business.
It should be easy to remember that a good system of internal control is SA___D to a business.
Operating Cycles and the Flow of Transactions
It should be easy to remember that a good system of internal control is SACRED to a business.
It should be easy to remember that a good system of internal control is S__RED to a business.
Operating Cycles and the Flow of Transactions
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various com_______s and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (S\_\_\_\_) Initiation • A\_\_\_\_\_\_\_\_\_\_ • C\_\_\_\_\_\_\_\_ or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • R\_\_\_\_\_\_\_\_ • (E\_\_\_\_\_\_\_\_ D\_\_\_\_\_\_\_\_\_) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (S\_\_\_\_) Initiation • A\_\_\_\_\_\_\_\_\_\_ • C\_\_\_\_\_\_\_\_ or execution • R\_\_\_\_\_\_\_\_ • (E\_\_\_\_\_\_\_\_ D\_\_\_\_\_\_\_\_\_) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (Start) Ini\_\_\_\_\_\_ • Authorization • Completion or exe\_\_\_\_\_\_ • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Ver\_\_\_\_\_\_\_\_
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of va____s components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control, the auditor will identify the different types of transactions or events that occur on an ongoing basis and that affect the entity’s operations or its financial position.
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
In obtaining an understanding of an entity’s internal control, the auditor will identify the different types of transactions or events that occur on an ongoing basis and that affect the entity’s operations or its financial position.
The auditor will then obtain an understanding of various components and in particular:
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• (Start) Initiation
– The auditor should det________ what event or circumstance initiates a transaction.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• (Start) Initiation
– The auditor should determine what event or circumstance initiates a transaction.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• (Start) Initiation
– The auditor should determine what ev___ or circumstance initiates a transaction.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• (Start) Initiation
– The auditor should determine what event or circumstance initiates a transaction.
Operating Cycles and the Flow of Transactions
• (Start) Initiation
– The auditor should determine what event or circumstance ini______s a transaction.
Operating Cycles and the Flow of Transactions
• (Start) Initiation
– The auditor should determine what event or circumstance initiates a transaction.
Operating Cycles and the Flow of Transactions
• (Start) Initiation
– The auditor should determine what event or circu_______ initiates a transaction.
Operating Cycles and the Flow of Transactions
• (Start) Initiation
– The auditor should determine what event or circumstance initiates a transaction.
Operating Cycles and the Flow of Transactions
• (Start) Initiation
– The auditor should determine what event or circumstance initiates a transaction.
Sales tran_______s, for example,
may be initiated when the entity’s sales force make calls to their regular customers
Operating Cycles and the Flow of Transactions
• (Start) Initiation
– The auditor should determine what event or circumstance initiates a transaction.
Sales transactions, for example,
may be initiated when the entity’s sales force make calls to their regular customers
Operating Cycles and the Flow of Transactions
• (Start) Initiation
– The auditor should determine what event or circumstance initiates a transaction.
Sales transactions, for example,
may be in______ed when the entity’s sales force make calls to their regular customers
Operating Cycles and the Flow of Transactions
• (Start) Initiation
– The auditor should determine what event or circumstance initiates a transaction.
Sales transactions, for example,
may be initiated when the entity’s sales force make calls to their regular customers
Operating Cycles and the Flow of Transactions
• (Start) Initiation
– The auditor should determine what event or circumstance initiates a transaction.
Sales transactions, for example,
may be initiated when the entity’s sales force make c___s to their regular customers
Operating Cycles and the Flow of Transactions
• (Start) Initiation
– The auditor should determine what event or circumstance initiates a transaction.
Sales transactions, for example,
may be initiated when the entity’s sales force make calls to their regular customers
Operating Cycles and the Flow of Transactions
• (Start) Initiation
– The auditor should determine what event or circumstance initiates a transaction.
Sales transactions, for example,
may be initiated when the entity’s sales force make calls to their regular customers
or when cust____s call in orders as they identify their needs.
Operating Cycles and the Flow of Transactions
• (Start) Initiation
– The auditor should determine what event or circumstance initiates a transaction.
Sales transactions, for example,
may be initiated when the entity’s sales force make calls to their regular customers
or when customers call in orders as they identify their needs.
Operating Cycles and the Flow of Transactions
• (Start) Initi____)
– The auditor should determine what event or circumstance initiates a transaction.
Sales transactions, for example,
may be initiated when the entity’s sales force make calls to their regular customers
or when customers call in orders as they identify their needs.
Operating Cycles and the Flow of Transactions
• (Start) Initiation
– The auditor should determine what event or circumstance initiates a transaction.
Sales transactions, for example,
may be initiated when the entity’s sales force make calls to their regular customers
or when customers call in orders as they identify their needs.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• Authorization
– Before an entity will com___ resources to meet its obligations in a transaction
or to respond to an event or circumstance,
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction
or to respond to an event or circumstance,
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• Authorization
– Before an en___y will commit resources to meet its obligations in a transaction
or to respond to an event or circumstance,
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction
or to respond to an event or circumstance,
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obli______s in a transaction
or to respond to an event or circumstance,
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction
or to respond to an event or circumstance,
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to re______ to an event or circumstance,
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an ev___ or circumstance,
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to dete_______ that the counterparty to the transaction is a legitimate party
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to determine that the counterparty to the transaction is a legitimate party
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to determine that the counterparty to the trans_______ is a legitimate party
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to determine that the counterparty to the transaction is a legitimate party
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to determine that the counterparty to the transaction is a legiti_____ party
with the intent and ability to perform or that the event or circumstance is real.
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to determine that the counterparty to the transaction is a legitimate party
with the intent and ability to perform or that the event or circumstance is real.
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to determine that the counterparty to the transaction is a legitimate party
with the in____ and ability to perform or that the event or circumstance is real.
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to determine that the counterparty to the transaction is a legitimate party
with the intent and ability to perform or that the event or circumstance is real.
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to determine that the counterparty to the transaction is a legitimate party
with the intent and ab_____ to perform or that the event or circumstance is real.
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to determine that the counterparty to the transaction is a legitimate party
with the intent and ability to perform or that the event or circumstance is real.
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to determine that the counterparty to the transaction is a legitimate party
with the intent and ability to perform or that the ev___ or circumstance is real.
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to determine that the counterparty to the transaction is a legitimate party
with the intent and ability to perform or that the event or circumstance is real.
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to determine that the counterparty to the transaction is a legitimate party
with the intent and ability to perform or that the event or circumstance is re__.
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to determine that the counterparty to the transaction is a legitimate party
with the intent and ability to perform or that the event or circumstance is real.
Operating Cycles and the Flow of Transactions
• Authorization
– Be____ an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to determine that the counterparty to the transaction is a legitimate party with the intent and ability to perform or that the event or circumstance is real.
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to determine that the counterparty to the transaction is a legitimate party with the intent and ability to perform or that the event or circumstance is real.
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit res______s to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to determine that the counterparty to the transaction is a legitimate party with the intent and ability to perform or that the event or circumstance is real.
Operating Cycles and the Flow of Transactions
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance,
it will want to determine that the counterparty to the transaction is a legitimate party with the intent and ability to perform or that the event or circumstance is real.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• Completion or execution
– The entity should have pol___es and procedures to make certain that
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• Completion or execution
– The entity should have policies and procedures to make certain that
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• Completion or execution
– The entity should have policies and proc____es to make certain that
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• Completion or execution
– The entity should have policies and procedures to make certain that
Operating Cycles and the Flow of Transactions
• Completion or execution
– The entity should have policies and procedures to make cer____ that
its obligations in transactions and its responses to recurring events
Operating Cycles and the Flow of Transactions
• Completion or execution
– The entity should have policies and procedures to make certain that
its obligations in transactions and its responses to recurring events
Operating Cycles and the Flow of Transactions
• Completion or execution
– The entity should have policies and procedures to make certain that
its obli_______s in transactions and its responses to recurring events
Operating Cycles and the Flow of Transactions
• Completion or execution
– The entity should have policies and procedures to make certain that
its obligations in transactions and its responses to recurring events
Operating Cycles and the Flow of Transactions
• Completion or execution
– The entity should have policies and procedures to make certain that
its obligations in transactions and its res_______es to recurring events
Operating Cycles and the Flow of Transactions
• Completion or execution
– The entity should have policies and procedures to make certain that
its obligations in transactions and its responses to recurring events
Operating Cycles and the Flow of Transactions
• Completion or execution
– The entity should have policies and procedures to make certain that
its obligations in transactions and its responses to re____ing events and circumstances
are being performed in accordance with management’s directives.
Operating Cycles and the Flow of Transactions
• Completion or execution
– The entity should have policies and procedures to make certain that
its obligations in transactions and its responses to recurring events and circumstances
are being performed in accordance with management’s directives.
Operating Cycles and the Flow of Transactions
• Completion or execution
– The entity should have policies and procedures to make certain that
its obligations in transactions and its responses to recurring events and circumstances
are being per____ed in accordance with management’s directives.
Operating Cycles and the Flow of Transactions
• Completion or execution
– The entity should have policies and procedures to make certain that
its obligations in transactions and its responses to recurring events and circumstances
are being performed in accordance with management’s directives.
Operating Cycles and the Flow of Transactions
• Completion or execution
– The entity should have policies and procedures to make certain that
its obligations in transactions and its responses to recurring events and circumstances
are being performed in accordance with m__________’s directives.
This will include the flow of documents, services, goods, and other resources throughout the system.
Operating Cycles and the Flow of Transactions
• Completion or execution
– The entity should have policies and procedures to make certain that
its obligations in transactions and its responses to recurring events and circumstances
are being performed in accordance with management’s directives.
This will include the flow of documents, services, goods, and other resources throughout the system.
Operating Cycles and the Flow of Transactions
• Completion or execution
– The entity should have policies and procedures to make certain that
its obligations in transactions and its responses to recurring events and circumstances
are being performed in accordance with management’s directives.
This will include the f___ of documents, services, goods, and other resources throughout the system.
Operating Cycles and the Flow of Transactions
• Completion or execution
– The entity should have policies and procedures to make certain that
its obligations in transactions and its responses to recurring events and circumstances
are being performed in accordance with management’s directives.
This will include the flow of documents, services, goods, and other resources throughout the system.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• Recording
– The entity should have a sys___ for making certain that
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• Recording
– The entity should have a system for making certain that
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• Recording
– The e____y should have a system for making certain that
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• Recording
– The entity should have a system for making certain that
Operating Cycles and the Flow of Transactions
• Recording
– The entity should have a system for making certain that
all tran______s, events, or circumstances that affect operations or financial position
Operating Cycles and the Flow of Transactions
• Recording
– The entity should have a system for making certain that
all transactions, events, or circumstances that affect operations or financial position
Operating Cycles and the Flow of Transactions
• Recording
– The entity should have a system for making certain that
a___ transactions, events, or circumstances that affect operations or financial position
Operating Cycles and the Flow of Transactions
• Recording
– The entity should have a system for making certain that
all transactions, events, or circumstances that affect operations or financial position
Operating Cycles and the Flow of Transactions
• Recording
– The entity should have a system for making certain that
all transactions, events, or circumstances that aff____ operations or financial position
Operating Cycles and the Flow of Transactions
• Recording
– The entity should have a system for making certain that
all transactions, events, or circumstances that affect operations or financial position
Operating Cycles and the Flow of Transactions
• Recording
– The entity should have a system for making certain that
all transactions, events, or circumstances that affect ope_______s or financial position
are properly captured and reflected in the entity’s financial records.
Operating Cycles and the Flow of Transactions
• Recording
– The entity should have a system for making certain that
all transactions, events, or circumstances that affect operations or financial position
are properly captured and reflected in the entity’s financial records.
Operating Cycles and the Flow of Transactions
• Recording
– The entity should have a system for making certain that
all transactions, events, or circumstances that affect operations or financial position
are properly ca_____ed and reflected in the entity’s financial records.
Operating Cycles and the Flow of Transactions
• Recording
– The entity should have a system for making certain that
all transactions, events, or circumstances that affect operations or financial position
are properly captured and reflected in the entity’s financial records.
Operating Cycles and the Flow of Transactions
• Recording
– The entity should have a system for making certain that
all transactions, events, or circumstances that affect operations or financial position
are properly captured and ref____ed in the entity’s financial records.
Operating Cycles and the Flow of Transactions
• Recording
– The entity should have a system for making certain that
all transactions, events, or circumstances that affect operations or financial position
are properly captured and reflected in the entity’s financial records.
Operating Cycles and the Flow of Transactions
• Recording
– The entity should have a system for making certain that
all transactions, events, or circumstances that affect operations or financial position
are properly captured and reflected in the entity’s financial re____s.
Operating Cycles and the Flow of Transactions
• Recording
– The entity should have a system for making certain that
all transactions, events, or circumstances that affect operations or financial position
are properly captured and reflected in the entity’s financial records.
Operating Cycles and the Flow of Transactions
• Re____ing
– The entity should have a system for making certain that
all transactions, events, or circumstances that affect operations or financial position
are properly captured and reflected in the entity’s financial records.
Operating Cycles and the Flow of Transactions
• Recording
– The entity should have a system for making certain that
all transactions, events, or circumstances that affect operations or financial position
are properly captured and reflected in the entity’s financial records.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• (Evaluate Defenses) Verifications
– Each sys___ should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• (Evaluate Defenses) Verifications
– Each system should have ch___s and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and ba_____s to make certain that each function within the system is performed properly and in the appropriate sequence.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that e__h function within the system is performed properly and in the appropriate sequence.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function with__ the system is performed properly and in the appropriate sequence.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed pro___ly and in the appropriate sequence.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appr_______ sequence.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate seq______.
This may involve policies such as
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve po____es such as
those requiring the shipping department to compare a customer’s purchase order with an internal sales order
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as
those requiring the shipping department to compare a customer’s purchase order with an internal sales order
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as
those requiring the shipping department to com____ a customer’s purchase order with an internal sales order
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as
those requiring the shipping department to compare a customer’s purchase order with an internal sales order
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as
those requiring the shipping department to compare a customer’s purc____ order with an internal sales order
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as
those requiring the shipping department to compare a customer’s purchase order with an internal sales order
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as
those requiring the shipping department to compare a customer’s purchase order with an int______ sales order
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as
those requiring the shipping department to compare a customer’s purchase order with an internal sales order
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as
those requiring the shipping department to compare a customer’s purchase order with an internal sales order
and to a li__ of goods transferred from stores before shipping the goods.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as
those requiring the shipping department to compare a customer’s purchase order with an internal sales order
and to a list of goods transferred from stores before shipping the goods.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as
those requiring the shipping department to compare a customer’s purchase order with an internal sales order
and to a list of goods tran_____ed from stores before shipping the goods.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as
those requiring the shipping department to compare a customer’s purchase order with an internal sales order
and to a list of goods transferred from stores before shipping the goods.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as
those requiring the shipping department to compare a customer’s purchase order with an internal sales order
and to a list of goods transferred from stores bef___ shipping the goods.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as
those requiring the shipping department to compare a customer’s purchase order with an internal sales order
and to a list of goods transferred from stores before shipping the goods.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as
those requiring the shipping department to compare a customer’s purchase order with an internal sales order
and to a list of goods transferred from stores before shipping the goods.
It may also involve
acc_______ing for the sequence of pre-numbered documents,
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as
those requiring the shipping department to compare a customer’s purchase order with an internal sales order
and to a list of goods transferred from stores before shipping the goods.
It may also involve
accounting for the sequence of pre-numbered documents,
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the seq_______ of pre-numbered documents,
checking for authoritative signatures,
or periodically reconciling recorded amounts to physical assets.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the sequence of pre-numbered documents,
checking for authoritative signatures,
or periodically reconciling recorded amounts to physical assets.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the sequence of pre-num___ed documents,
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the sequence of pre-numbered documents,
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the sequence of pre-numbered documents,
ch___ing for authoritative signatures,
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the sequence of pre-numbered documents,
checking for authoritative signatures,
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the sequence of pre-numbered documents,
checking for auth_______ signatures,
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the sequence of pre-numbered documents,
checking for authoritative signatures,
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the sequence of pre-numbered documents,
checking for authoritative signatures,
or periodically rec____iling recorded amounts to physical assets.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the sequence of pre-numbered documents,
checking for authoritative signatures,
or periodically reconciling recorded amounts to physical assets.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the sequence of pre-numbered documents,
checking for authoritative signatures,
or periodically reconciling re____ed amounts to physical assets.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the sequence of pre-numbered documents,
checking for authoritative signatures,
or periodically reconciling recorded amounts to physical assets.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the sequence of pre-numbered documents,
checking for authoritative signatures,
or periodically reconciling recorded amounts to p____ical assets.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the sequence of pre-numbered documents,
checking for authoritative signatures,
or periodically reconciling recorded amounts to physical assets.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the sequence of pre-numbered documents,
checking for authoritative signatures,
or periodically reconciling recorded amounts to physical assets.
These verif______s may occur throughout a system.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the sequence of pre-numbered documents,
checking for authoritative signatures,
or periodically reconciling recorded amounts to physical assets.
These verifications may occur throughout a system.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the sequence of pre-numbered documents,
checking for authoritative signatures,
or periodically reconciling recorded amounts to physical assets.
These verifications may oc___ throughout a system.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
It may also involve
accounting for the sequence of pre-numbered documents,
checking for authoritative signatures,
or periodically reconciling recorded amounts to physical assets.
These verifications may occur throughout a system.
Operating Cycles and the Flow of Transactions
• (Evaluate De______s) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as those requiring the shipping department to compare a customer’s purchase order with an internal sales order and to a list of goods transferred from stores before shipping the goods.
It may also involve
accounting for the sequence of pre-numbered documents, checking for authoritative signatures, or periodically reconciling recorded amounts to physical assets.
These verifications may occur throughout a system.
Operating Cycles and the Flow of Transactions
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as those requiring the shipping department to compare a customer’s purchase order with an internal sales order and to a list of goods transferred from stores before shipping the goods.
It may also involve
accounting for the sequence of pre-numbered documents, checking for authoritative signatures, or periodically reconciling recorded amounts to physical assets.
These verifications may occur throughout a system.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
• (Start) Initiation
– The auditor should determine what event or circumstance initiates a transaction.
Sales transactions, for example, may be initiated when the entity’s sales force make calls to their regular customers or when customers call in orders as they identify their needs.
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance, it will want to determine that the counterparty to the transaction is a legitimate party with the intent and ability to perform or that the event or circumstance is real.
• Completion or execution
– The entity should have policies and procedures to make certain that its obligations in transactions and its responses to recurring events and circumstances are being performed in accordance with management’s directives.
This will include the flow of documents, services, goods, and other resources throughout the system.
• Recording
– The entity should have a system for making certain that all transactions, events, or circumstances that affect operations or financial position are properly captured and reflected in the entity’s financial records.
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as those requiring the shipping department to compare a customer’s purchase order with an internal sales order and to a list of goods transferred from stores before shipping the goods.
It may also involve accounting for the sequence of pre-numbered documents, checking for authoritative signatures, or periodically reconciling recorded amounts to physical assets.
These verifications may occur throughout a system.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
• (Start) Initiation
– The auditor should determine what event or circumstance initiates a transaction.
Sales transactions, for example, may be initiated when the entity’s sales force make calls to their regular customers or when customers call in orders as they identify their needs.
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance, it will want to determine that the counterparty to the transaction is a legitimate party with the intent and ability to perform or that the event or circumstance is real.
• Completion or execution
– The entity should have policies and procedures to make certain that its obligations in transactions and its responses to recurring events and circumstances are being performed in accordance with management’s directives.
This will include the flow of documents, services, goods, and other resources throughout the system.
• Recording
– The entity should have a system for making certain that all transactions, events, or circumstances that affect operations or financial position are properly captured and reflected in the entity’s financial records.
• (Evaluate Defenses) Verifications
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as those requiring the shipping department to compare a customer’s purchase order with an internal sales order and to a list of goods transferred from stores before shipping the goods.
It may also involve accounting for the sequence of pre-numbered documents, checking for authoritative signatures, or periodically reconciling recorded amounts to physical assets.
These verifications may occur throughout a system.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
• (Start) Initiation
– The auditor should determine what event or circumstance initiates a transaction.
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance, it will want to determine that the counterparty to the transaction is a legitimate party with the intent and ability to perform or that the event or circumstance is real.
• Completion or execution
– The entity should have policies and procedures to make certain that its obligations in transactions and its responses to recurring events and circumstances are being performed in accordance with management’s directives. This will include the flow of documents, services, goods, and other resources throughout the system.
• Recording
– The entity should have a system for making certain that all transactions, events, or circumstances that affect operations or financial position are properly captured and reflected in the entity’s financial records.
• (Evaluate Defenses) Verification
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence. These verification may occur throughout a system.
Operating Cycles and the Flow of Transactions
The auditor will then obtain an understanding of various components and in particular: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
It should be easy to remember that a good system of internal control is SACRED to a business.
• (Start) Initiation
– The auditor should determine what event or circumstance initiates a transaction.
• Authorization
– Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance, it will want to determine that the counterparty to the transaction is a legitimate party with the intent and ability to perform or that the event or circumstance is real.
• Completion or execution
– The entity should have policies and procedures to make certain that its obligations in transactions and its responses to recurring events and circumstances are being performed in accordance with management’s directives. This will include the flow of documents, services, goods, and other resources throughout the system.
• Recording
– The entity should have a system for making certain that all transactions, events, or circumstances that affect operations or financial position are properly captured and reflected in the entity’s financial records.
• (Evaluate Defenses) Verification
– Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence. These verification may occur throughout a system.
Operating Cycles and the Flow of Transactions
When the auditor obtains an und_______ing of each of the systems applied to recurring transactions, often referred to as cycles,
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles,
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to rec___ing transactions, often referred to as cycles, .
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles,
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cy___s,
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles,
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles,
the auditor is con____ed with what each specific employee does,
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles,
the auditor is concerned with what each specific employee does,
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles,
the auditor is concerned with
what each specific employee does,
the documents they han___,
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles,
the auditor is concerned with
what each specific employee does,
the documents they handle,
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles,
the auditor is concerned with
what each specific employee does,
the documents they handle,
and whether there is appropriate segr________ of duties.
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles,
the auditor is concerned with
what each specific employee does,
the documents they handle,
and whether there is appropriate segregation of duties.
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles,
the auditor is concerned with
what each specific employee does,
the documents they handle,
and whether there is app_________ segregation of duties.
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles,
the auditor is concerned with
what each specific employee does,
the documents they handle,
and whether there is appropriate segregation of duties.
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles,
the auditor is concerned with
what each specific employee does,
the documents they handle,
and whether there is appropriate segregation of d__ies.
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles,
the auditor is concerned with
what each specific employee does,
the documents they handle,
and whether there is appropriate segregation of duties.
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles, the auditor is concerned with what each specific employee does, the documents they handle, and whether there is appropriate segregation of duties.
The duties to be segr______ed are
the authorization of transactions,
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles, the auditor is concerned with what each specific employee does, the documents they handle, and whether there is appropriate segregation of duties.
The duties to be segregated are
the authorization of transactions,
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles, the auditor is concerned with what each specific employee does, the documents they handle, and whether there is appropriate segregation of duties.
The duties to be segregated are
the auth________ of transactions,
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles, the auditor is concerned with what each specific employee does, the documents they handle, and whether there is appropriate segregation of duties.
The duties to be segregated are
the authorization of transactions,
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of tran_______s,
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the re____ing of those transactions,
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those tran_______s,
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
cus____ of the resources
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are ass_____ed with that transaction,
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that transaction,
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the re______es that are associated with that transaction,
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that transaction,
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that trans______,
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that transaction,
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that transaction, and
comp_____ or reconciliation
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that transaction, and
comparison or reconciliation
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that transaction, and
comparison or reco_________ of the recorded amounts
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that transaction, and
comparison or reconciliation of the recorded amounts
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that transaction, and
comparison or reconciliation of the re____ed amounts to the physical resources (ARCC).
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that transaction, and
comparison or reconciliation of the recorded amounts to the physical resources (ARCC).
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that transaction, and
comparison or reconciliation of the recorded amounts to the phy______ resources (ARCC).
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that transaction, and
comparison or reconciliation of the recorded amounts to the physical resources (ARCC).
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that transaction, and
comparison or reconciliation of the recorded amounts to the physical resources (A_CC).
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that transaction, and
comparison or reconciliation of the recorded amounts to the physical resources (ARCC).
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that transaction, and
comparison or reconciliation of the recorded amounts to the physical resources (AR___).
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that transaction, and
comparison or reconciliation of the recorded amounts to the physical resources (ARCC).
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that transaction, and
comparison or reconciliation of the recorded amounts to the physical resources (ARCC).
(Authorization, Recording, Custody and Comparison)
Operating Cycles and the Flow of Transactions
The duties to be segregated are
the authorization of transactions,
the recording of those transactions,
custody of the resources that are associated with that transaction, and
comparison or reconciliation of the recorded amounts to the physical resources (ARCC).
(Authorization, Recording, Custody and Comparison)
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles, the auditor is concerned with what each specific employee does, the documents they handle, and whether there is appropriate segregation of duties.
The duties to be segregated are the authorization of transactions, the recording of those transactions, custody of the resources that are associated with that transaction, and comparison or reconciliation of the recorded amounts to the physical resources (ARCC).
ARCC = Authorization, Recording, Custody and Comparison
Operating Cycles and the Flow of Transactions
When the auditor obtains an understanding of each of the systems applied to recurring transactions, often referred to as cycles, the auditor is concerned with what each specific employee does, the documents they handle, and whether there is appropriate segregation of duties.
The duties to be segregated are the authorization of transactions, the recording of those transactions, custody of the resources that are associated with that transaction, and comparison or reconciliation of the recorded amounts to the physical resources (ARCC).
ARCC = Authorization, Recording, Custody and Comparison
Operating Cycles and the Flow of Transactions
Some con____s are considered preventative, designed to minimize the possibility that misstatements will occur.
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Operating Cycles and the Flow of Transactions
Some controls are considered prev_______, designed to minimize the possibility that misstatements will occur.
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to mini____ the possibility that misstatements will occur.
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the po_______y that misstatements will occur.
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will oc___.
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Although a prev________ approach has the tendency to be the most effective,
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Although a preventative approach has the tendency to be the most effective,
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Although a preventative approach has the tendency to be the m___ effective,
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Although a preventative approach has the tendency to be the most effective,
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Although a preventative approach has the tendency to be the most effective,
it is not always fea_____ to develop
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Although a preventative approach has the tendency to be the most effective,
it is not always feasible to develop
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Although a preventative approach has the tendency to be the most effective,
it is n__ always feasible to develop
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Although a preventative approach has the tendency to be the most effective,
it is not always feasible to develop
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective,
it is not always feasible to develop controls that will be effe_____ at preventing a misstatement,
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective,
it is not always feasible to develop controls that will be effective at preventing a misstatement,
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective,
it is not always feasible to develop controls that will be effective at pre____ing a misstatement,
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective,
it is not always feasible to develop controls that will be effective at preventing a misstatement,
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement,
particularly one that results from fr___,
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement,
particularly one that results from fraud,
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement,
particularly one that re____s from fraud, and in many cases,
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement,
particularly one that results from fraud, and in many cases,
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement,
particularly one that results from fraud, and in many cases,
the c___ of developing an effective preventative control will exceed the benefit that can be derived from it.
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement,
particularly one that results from fraud, and in many cases,
the cost of developing an effective preventative control will exceed the benefit that can be derived from it.
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement,
particularly one that results from fraud, and in many cases,
the cost of dev____ing an effective preventative control will exceed the benefit that can be derived from it.
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement,
particularly one that results from fraud, and in many cases,
the cost of developing an effective preventative control will exceed the benefit that can be derived from it.
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement,
particularly one that results from fraud, and in many cases,
the cost of developing an eff______ preventative control will exceed the benefit that can be derived from it.
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement,
particularly one that results from fraud, and in many cases,
the cost of developing an effective preventative control will exceed the benefit that can be derived from it.
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement,
particularly one that results from fraud, and in many cases,
the cost of developing an effective preventative control will exc___ the benefit that can be derived from it.
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement,
particularly one that results from fraud, and in many cases,
the cost of developing an effective preventative control will exceed the benefit that can be derived from it.
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement,
particularly one that results from fraud, and in many cases,
the cost of developing an effective preventative control will exceed the be___it that can be derived from it.
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement,
particularly one that results from fraud, and in many cases,
the cost of developing an effective preventative control will exceed the benefit that can be derived from it.
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective, it is not al___s feasible to develop controls that will be effective at preventing a misstatement,
particularly one that results from fraud, and in many cases,
the cost of developing an effective preventative control will exceed the benefit that can be derived from it.
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement,
particularly one that results from fraud, and in many cases,
the cost of developing an effective preventative control will exceed the benefit that can be derived from it.
Operating Cycles and the Flow of Transactions
Although a preventative ap______h has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement, particularly one that results from fraud, and in many cases,
the cost of developing an effective preventative control will exceed the benefit that can be derived from it.
Operating Cycles and the Flow of Transactions
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement, particularly one that results from fraud, and in many cases,
the cost of developing an effective preventative control will exceed the benefit that can be derived from it.
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement, particularly one that results from fraud, and in many cases,
the cost of developing an effective preventative control will exceed the benefit that can be derived from it.
Other controls are designed to be corr____ve
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement, particularly one that results from fraud, and in many cases,
the cost of developing an effective preventative control will exceed the benefit that can be derived from it.
Other controls are designed to be corrective
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement, particularly one that results from fraud, and in many cases,
the cost of developing an effective preventative control will exceed the benefit that can be derived from it.
Other controls are de____ed to be corrective
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement, particularly one that results from fraud, and in many cases,
the cost of developing an effective preventative control will exceed the benefit that can be derived from it.
Other controls are designed to be corrective
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that
they are de____ed to identify misstatements that may occur
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that
they are designed to identify misstatements that may occur
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that
they are designed to identify misstatements that may occur due to er___s or fraud
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that
they are designed to identify misstatements that may occur due to errors or fraud
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that
they are designed to identify misstatements that may occur due to errors or fr___
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that
they are designed to identify misstatements that may occur due to errors or fraud
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that
they are designed to identify misstatements that may occur due to errors or fraud
and es______sh a means of correcting them on a timely basis.
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that
they are designed to identify misstatements that may occur due to errors or fraud
and establish a means of correcting them on a timely basis.
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that
they are designed to identify misstatements that may occur due to errors or fraud
and establish a means of cor____ing them on a timely basis.
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that
they are designed to identify misstatements that may occur due to errors or fraud
and establish a means of correcting them on a timely basis.
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that
they are designed to identify misstatements that may occur due to errors or fraud
and establish a means of correcting them on a t___ly basis.
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that
they are designed to identify misstatements that may occur due to errors or fraud
and establish a means of correcting them on a timely basis.
Operating Cycles and the Flow of Transactions
Other con____s are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
These, of course, have their li_______s
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
These, of course, have their limitations
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
These, of course, have their limitations in that they may n__ be effective for a fraudulent misstatement
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
These, of course, have their limitations in that they may not be effective for a fraudulent misstatement
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
These, of course, have their limitations in that they may not be effective for a fra________ misstatement
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
These, of course, have their limitations in that they may not be effective for a fraudulent misstatement
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
These, of course, have their limitations in that they may not be effective for a fraudulent misstatement that is cleverly con____ed
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
These, of course, have their limitations in that they may not be effective for a fraudulent misstatement that is cleverly concealed
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
These, of course, have their limitations in that they may not be effective for a fraudulent misstatement that is cleverly concealed and may id___ify a misstatement after a negative impact has already occurred.
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
These, of course, have their limitations in that they may not be effective for a fraudulent misstatement that is cleverly concealed and may identify a misstatement after a negative impact has already occurred.
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
These, of course, have their limitations in that they may not be effective for a fraudulent misstatement that is cleverly concealed and may identify a misstatement after a neg_____ impact has already occurred.
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
These, of course, have their limitations in that they may not be effective for a fraudulent misstatement that is cleverly concealed and may identify a misstatement after a negative impact has already occurred.
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
These, of course, have their limitations in that they may not be effective for a fraudulent misstatement that is cleverly concealed and may identify a misstatement after a negative impact has already oc____ed.
Operating Cycles and the Flow of Transactions
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
These, of course, have their limitations in that they may not be effective for a fraudulent misstatement that is cleverly concealed and may identify a misstatement after a negative impact has already occurred.
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement, particularly one that results from fraud,
and in many cases, the cost of developing an effective preventative control will exceed the benefit that can be derived from it.
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
These, of course, have their limitations in that they may not be effective for a fraudulent misstatement that is cleverly concealed and may identify a misstatement after a negative impact has already occurred.
Operating Cycles and the Flow of Transactions
Some controls are considered preventative, designed to minimize the possibility that misstatements will occur.
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement, particularly one that results from fraud,
and in many cases, the cost of developing an effective preventative control will exceed the benefit that can be derived from it.
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
These, of course, have their limitations in that they may not be effective for a fraudulent misstatement that is cleverly concealed and may identify a misstatement after a negative impact has already occurred.
Operating Cycles and the Flow of Transactions
When ev______ing the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cy___, the focus will be on the accounts balances or classes of transactions that are affected.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts ba_____s or classes of transactions that are affected.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or cl___es of transactions that are affected.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are aff___ed.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the fo___ will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cy___ will generally result in a debit to cash or accounts receivable and a credit to sales,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The re_____ cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a de___ to cash or accounts receivable and a credit to sales,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to c__h or accounts receivable and a credit to sales,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a cr____ to sales,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to s__es,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the pur____ing cycle will result in a debit to purchases in a periodic system,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to purchases in a periodic system,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to pur____es in a periodic system,
or to inventory in a perpetual system,
and a credit to accounts payable.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to purchases in a periodic system,
or to inventory in a perpetual system,
and a credit to accounts payable.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to pur____es in a periodic system,
or to inventory in a perpetual system,
and a credit to accounts payable.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to purchases in a periodic system,
or to inventory in a perpetual system,
and a credit to accounts payable.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to purchases in a periodic system,
or to inve____y in a perpetual system,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to purchases in a periodic system,
or to inventory in a perpetual system,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to purchases in a peri____c system,
or to inventory in a perpetual system,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to purchases in a periodic system,
or to inventory in a perpetual system,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to purchases in a periodic system,
or to inventory in a perpe___ system,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to purchases in a periodic system,
or to inventory in a perpetual system,
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to purchases in a periodic system,
or to inventory in a perpetual system,
and a cre___ to accounts payable.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to purchases in a periodic system,
or to inventory in a perpetual system,
and a credit to accounts payable.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to purchases in a periodic system,
or to inventory in a perpetual system,
and a credit to accounts pay____.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to purchases in a periodic system,
or to inventory in a perpetual system,
and a credit to accounts payable.
Operating Cycles and the Flow of Transactions
When evaluating the sys___ for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to purchases in a periodic system, or to inventory in a perpetual system, and a credit to accounts payable.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to purchases in a periodic system, or to inventory in a perpetual system, and a credit to accounts payable.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to purchases in a periodic system, or to inventory in a perpetual system, and a credit to accounts payable.
For the acc____ affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales,
while the purchasing cycle will result in a debit to purchases in a periodic system, or to inventory in a perpetual system, and a credit to accounts payable.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
For the account affected, the auditor will eva_____ whether or not a step or process within the system supports one or more of management’s assertions.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
For the account affected, the auditor will evaluate whether or not a s___ or process within the system supports one or more of management’s assertions.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
For the account affected, the auditor will evaluate whether or not a step or process within the sys___ supports one or more of management’s assertions.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
For the account affected, the auditor will evaluate whether or not a step or process within the system sup____s one or more of management’s assertions.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of m_________’s assertions.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s ass_______s.
Operating Cycles and the Flow of Transactions
When evaluating the system for a particular cycle, the focus will be on the accounts balances or classes of transactions that are affected.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
Operating Cycles and the Flow of Transactions
For the account affected, the auditor will evaluate whether or not a step or pr____ss within the system supports one or more of management’s assertions.
• A requirement
that each re____ed sale be supported by an order signed by a customer
Operating Cycles and the Flow of Transactions
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
• A requirement
that each recorded sale be supported by an order signed by a customer
Operating Cycles and the Flow of Transactions
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
• A requirement
that each recorded sale be sup____ed by an order signed by a customer
Operating Cycles and the Flow of Transactions
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
• A requirement
that each recorded sale be supported by an order signed by a customer
Operating Cycles and the Flow of Transactions
• A requirement
that each recorded sale be supported by an order s___ed by a customer
Operating Cycles and the Flow of Transactions
• A requirement
that each recorded sale be supported by an order signed by a customer
Operating Cycles and the Flow of Transactions
• A requirement
that each recorded sale be supported by an order signed by a customer
supports management’s as______ of occurrence
Operating Cycles and the Flow of Transactions
• A requirement
that each recorded sale be supported by an order signed by a customer
supports management’s assertion of occurrence
Operating Cycles and the Flow of Transactions
• A requirement
that each recorded sale be supported by an order signed by a customer
supports management’s assertion of occu______
Operating Cycles and the Flow of Transactions
• A requirement
that each recorded sale be supported by an order signed by a customer
supports management’s assertion of occurrence
Operating Cycles and the Flow of Transactions
• A requirement
that each recorded sale be supported by an order signed by a customer
supports management’s assertion of occurrence
in that having a signed purchase order provides ev_______ that a sale did occur.
Operating Cycles and the Flow of Transactions
• A requirement
that each recorded sale be supported by an order signed by a customer
supports management’s assertion of occurrence
in that having a signed purchase order provides evidence that a sale did occur.
Operating Cycles and the Flow of Transactions
• A requirement
that each recorded sale be supported by an order signed by a customer
supports management’s assertion of occurrence
in that having a signed purchase order provides evidence that a sale did oc___.
Operating Cycles and the Flow of Transactions
• A requirement
that each recorded sale be supported by an order signed by a customer
supports management’s assertion of occurrence
in that having a signed purchase order provides evidence that a sale did occur.
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk no___y a supervisor whenever an internally generated sales order is presented out of sequence
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated s___s order is presented out of sequence
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented o__ of sequence
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
supports the as_______ of completeness
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
supports the assertion of completeness
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
supports the assertion of com_______ess
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
supports the assertion of completeness
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
supports the assertion of completeness
in that t___ing all sales orders to the accounting records
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
supports the assertion of completeness
in that tracing all sales orders to the accounting records
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
supports the assertion of completeness
in that tracing all sales or___s to the accounting records
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
supports the assertion of completeness
in that tracing all sales orders to the accounting records
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
supports the assertion of completeness
in that tracing all sales orders to the accounting records will provide evid____ that all sales transactions have been recorded.
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
supports the assertion of completeness
in that tracing all sales orders to the accounting records will provide evidence that all sales transactions have been recorded.
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
supports the assertion of completeness
in that tracing all sales orders to the accounting records will provide evidence that a__ sales transactions have been recorded.
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
supports the assertion of completeness
in that tracing all sales orders to the accounting records will provide evidence that all sales transactions have been recorded.
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
supports the assertion of completeness
in that tracing all sales orders to the accounting records will provide evidence that all sales transactions have been re____ed.
Operating Cycles and the Flow of Transactions
• A policy
that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
supports the assertion of completeness
in that tracing all sales orders to the accounting records will provide evidence that all sales transactions have been recorded.
Operating Cycles and the Flow of Transactions
For the account af____ed, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
• A requirement that each recorded sale be supported by an order signed by a customer
supports management’s assertion of occurrence
in that having a signed purchase order provides evidence that a sale did occur.
• A policy that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
supports the assertion of completeness
in that tracing all sales orders to the accounting records will provide evidence that all sales transactions have been recorded.
Operating Cycles and the Flow of Transactions
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
• A requirement that each recorded sale be supported by an order signed by a customer
supports management’s assertion of occurrence
in that having a signed purchase order provides evidence that a sale did occur.
• A policy that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence
supports the assertion of completeness
in that tracing all sales orders to the accounting records will provide evidence that all sales transactions have been recorded.
Are all related accounts within each cycle audited together or separately?
Are all related accounts within each cycle audited together or separately?
Answer:
All related accounts within each cycle are audited together
An auditor divides the audit down into different _______ that make up the flow of transactions
An auditor divides the audit down into different cycles that make up the flow of transactions
An auditor divides the audit down into different cycles that make up the ____ of transactions
An auditor divides the audit down into different cycles that make up the flow of transactions
An auditor _______ the audit down into different cycles that make up the flow of transactions
An auditor divides the audit down into different cycles that make up the flow of transactions
An auditor divides the audit down into different cycles that make up the flow of ___________
An auditor divides the audit down into different cycles that make up the flow of transactions
An auditor divides the _____ down into different cycles that make up the flow of transactions for the entire company.
An auditor divides the audit down into different cycles that make up the flow of transactions for the entire company.
Within each cycle, the auditor is concerned with
what each specific ___________ does,
Within each cycle, the auditor is concerned with
what each specific employee does,
Within each cycle, the auditor is concerned with
what each specific employee does,
the ___________ they handle
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
and how each __________ relates to the segregation of duties
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
and how each document relates to the segregation of duties
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
and how each document relates to the ____________ of duties
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
and how each document relates to the segregation of duties
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
and how each document relates to the segregation of duties (_____)
ARCC = Authorization, Recording, Custody, Comparison
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
and how each document relates to the segregation of duties (ARCC)
ARCC = Authorization, Recording, Custody, Comparison
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
and ___ each document relates to the segregation of duties (ARCC)
ARCC = Authorization, Recording, Custody, Comparison
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
and how each document relates to the segregation of duties (ARCC)
ARCC = Authorization, Recording, Custody, Comparison
Within each cycle, the auditor is __________ with
what each specific employee does,
the documents they handle
and how each document relates to the segregation of duties (ARCC)
ARCC = Authorization, Recording, Custody, Comparison
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
and how each document relates to the segregation of duties (ARCC)
ARCC = Authorization, Recording, Custody, Comparison
Within each cycle, the auditor is concerned with
what each specific employee _____,
Within each cycle, the auditor is concerned with
what each specific employee does,
Within each cycle, the auditor is concerned with
what ____ specific employee does,
Within each cycle, the auditor is concerned with
what each specific employee does,
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
and how ____ document relates to the segregation of duties
Within each cycle, the auditor is concerned with
what each specific employee does,
the documents they handle
and how each document relates to the segregation of duties
Within each cycle, the auditor is concerned with
____ each specific employee does,
Within each cycle, the auditor is concerned with
what each specific employee does,
ARCC =
ARCC = Authorization, Recording, Custody, Comparison
ARCC = A__________, Recording, Custody, Comparison
ARCC = Authorization, Recording, Custody, Comparison
ARCC = Authorization, R________, Custody, Comparison
ARCC = Authorization, Recording, Custody, Comparison
ARCC = Authorization, Recording, C_______, Comparison
ARCC = Authorization, Recording, Custody, Comparison
ARCC = Authorization, Recording, Custody, C_________
ARCC = Authorization, Recording, Custody, Comparison
ARCC = ___________, Recording, __________, Comparison
ARCC = Authorization, Recording, Custody, Comparison
ARCC = Authorization, _________, Custody, ____________
ARCC = Authorization, Recording, Custody, Comparison
ARCC =
ARCC = Authorization, Recording, Custody, Comparison
What is a function of internal control?
Controls have a function of either
1) P__________ misstatements before they occur
or
2) D_________and Correcting misstatements that have already occurred
What is a function of internal control?
Controls have a function of either
1) Preventing misstatements before they occur
(most effective)
or
2) Detecting and Correcting misstatements that have already occurred
(less expensive to implement, but could detect too late).
What is a function of internal control?
Controls have a function of either
1) P____________ misstatements before they occur
or
2) Detecting and C__________ misstatements that have already occurred
What is a function of internal control?
Controls have a function of either
1) Preventing misstatements before they occur
(most effective)
or
2) Detecting and Correcting misstatements that have already occurred
(less expensive to implement, but could detect too late).
What is a function of internal control?
Controls have a function of either
1) P___________ misstatements before they occur
or
2) D__________ and C________ misstatements that have already occurred
What is a function of internal control?
Controls have a function of either
1) Preventing misstatements before they occur
(most effective)
or
2) Detecting and Correcting misstatements that have already occurred
(less expensive to implement, but could detect too late).
What is a function of internal control?
Controls have a function of either
1) ______________________ before they occur
(most effective)
or
2) ________________________________ that have already occurred
(less expensive to implement, but could detect too late).
What is a function of internal control?
Controls have a function of either
1) Preventing misstatements before they occur
(most effective)
or
2) Detecting and Correcting misstatements that have already occurred
(less expensive to implement, but could detect too late).
What is a function of internal control?
What is a function of internal control?
Controls have a function of either
1) Preventing misstatements before they occur
(most effective)
or
2) Detecting and Correcting misstatements that have already occurred
(less expensive to implement, but could detect too late).
Which function of internal control is the most effective?
1) Preventing misstatements
or
2) Detecting and Correcting misstatements
Which function of internal control is the most effective?
Answer:
1) Preventing misstatements
Controls have a function of either
1) Preventing misstatements before they occur
(most effective)
or
2) Detecting and Correcting misstatements that have already occurred
(less expensive to implement, but could detect too late).
Which function of internal control is less expensive to implement?
1) Preventing misstatements
or
2) Detecting and Correcting misstatements
Which function of internal control is less expensive to implement function of internal control?
Answer:
2) Detecting and Correcting misstatements
Controls have a function of either
1) Preventing misstatements before they occur
(most effective)
or
2) Detecting and Correcting misstatements that have already occurred
(less expensive to implement, but could detect too late).
“The auditor should determine what event or circumstance initiates a transaction.”
The paragraph above described which of the following components: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
“The auditor should determine what event or circumstance initiates a transaction.
Sales transactions, for example, may be initiated when the entity’s sales force make calls to their regular customers or when customers call in orders as they identify their needs.”
• (Start) Initiation
“Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance, it will want to determine that the counterparty to the transaction is a legitimate party with the intent and ability to perform or that the event or circumstance is real.”
The paragraph above described which of the following components: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
Before an entity will commit resources to meet its obligations in a transaction or to respond to an event or circumstance, it will want to determine that the counterparty to the transaction is a legitimate party with the intent and ability to perform or that the event or circumstance is real.
• Authorization
“The entity should have policies and procedures to make certain that its obligations in transactions and its responses to recurring events and circumstances are being performed in accordance with management’s directives.
This will include the flow of documents, services, goods, and other resources throughout the system.”
The paragraph above described which of the following components: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
“The entity should have policies and procedures to make certain that its obligations in transactions and its responses to recurring events and circumstances are being performed in accordance with management’s directives.
This will include the flow of documents, services, goods, and other resources throughout the system.”
• Completion or execution
“The entity should have a system for making certain that all transactions, events, or circumstances that affect operations or financial position are properly captured and reflected in the entity’s financial records.”
The paragraph above described which of the following components: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
The entity should have a system for making certain that all transactions, events, or circumstances that affect operations or financial position are properly captured and reflected in the entity’s financial records.
• Recording
“Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as those requiring the shipping department to compare a customer’s purchase order with an internal sales order and to a list of goods transferred from stores before shipping the goods.
It may also involve accounting for the sequence of pre-numbered documents, checking for authoritative signatures, or periodically reconciling recorded amounts to physical assets.
These verifications may occur throughout a system.”
The paragraph above described which of the following components: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
“Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence.
This may involve policies such as those requiring the shipping department to compare a customer’s purchase order with an internal sales order and to a list of goods transferred from stores before shipping the goods.
It may also involve accounting for the sequence of pre-numbered documents, checking for authoritative signatures, or periodically reconciling recorded amounts to physical assets.
These verifications may occur throughout a system.”
• (Evaluate
Defenses) Verifications
“Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence. These verifications may occur throughout a system.”
The paragraph above described which of the following components: (SACRED)
• (Start) Initiation • Authorization • Completion or execution • Recording • (Evaluate Defenses) Verifications
“Each system should have checks and balances to make certain that each function within the system is performed properly and in the appropriate sequence. These verifications may occur throughout a system.”
• (Evaluate
Defenses) Verifications
In obtaining an understanding of an entity’s internal control,
the auditor will identify the _________ types of transactions or events
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) occur on an _______ basis
and
that 2) affect the entity’s operations or its financial position.
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s operations or its financial position.
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or ________
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
In obtaining an _____________ of an entity’s internal control,
the auditor will identify the different types of transactions or events
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) _____ on an ongoing basis
and
that 2) ______ the entity’s operations or its financial position.
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s operations or its financial position.
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s __________ or its financial position.
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s operations or its financial position.
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s operations or its _________ position.
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s operations or its financial position.
In _________ an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s operations or its financial position.
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s operations or its financial position.
In obtaining an understanding of an entity’s internal control,
the auditor will _______ the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s operations or its financial position.
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s operations or its financial position.
In obtaining an understanding of an entity’s _______________ ,
the auditor will identify the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s operations or its financial position.
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s operations or its financial position.
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) occur on an _________________
and
that 2) affect the entity’s operations or its financial position.
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s operations or its financial position.
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s ___________ or its ______________________ .
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s operations or its financial position.
In obtaining an understanding of an entity’s internal control,
the ________ will identify the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s operations or its financial position.
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s operations or its financial position.
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different _____ of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s operations or its financial position.
In obtaining an understanding of an entity’s internal control,
the auditor will identify the different types of transactions or events
that 1) occur on an ongoing basis
and
that 2) affect the entity’s operations or its financial position.
Why a preventative approach is not always feasible to develop controls that will be effective at preventing a misstatement?
Why a preventative approach is not always feasible to develop controls that will be effective at preventing a misstatement?
Answer: Cost/ Benefit Consideration
The cost of developing an effective preventative control will exceed the benefit that can be derived from it.
Although a preventative approach has the tendency to be the most effective, it is not always feasible to develop controls that will be effective at preventing a misstatement, particularly one that results from fraud, and in many cases, the cost of developing an effective preventative control will exceed the benefit that can be derived from it.
What are limitations of corrective approach type of controls?
What are limitations of corrective approach type of controls?
Answer:
The corrective controls may not be effective for a fraudulent misstatement that is cleverly concealed and may identify a misstatement after a negative impact has already occurred.
Other controls are designed to be corrective in that they are designed to identify misstatements that may occur due to errors or fraud and establish a means of correcting them on a timely basis.
These, of course, have their limitations in that they may not be effective for a fraudulent misstatement that is cleverly concealed and may identify a misstatement after a negative impact has already occurred.
The revenue cycle will generally result in a debit to ____ or accounts receivable and a credit to sales.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales.
The revenue cycle will generally result in a debit to cash or _______________ and a credit to sales.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to _____.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales.
The _________ cycle will generally result in a debit to cash or accounts receivable and a credit to sales.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales.
The revenue cycle will generally result in a _____ to cash or accounts receivable and a credit to sales.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales.
The revenue cycle will generally result in a debit to cash or accounts receivable and a _____ to sales.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales.
The revenue cycle will generally result in a _____ to cash or accounts receivable and a _____ to sales.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales.
The revenue cycle will generally result in a debit to ____ or ______________ and a credit to sales.
The revenue cycle will generally result in a debit to cash or accounts receivable and a credit to sales.
The ___________ cycle will result in a debit
to purchases in a periodic system, or
to inventory in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to inventory in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a _____
to purchases in a periodic system, or
to inventory in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to inventory in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to inventory in a perpetual system,
and a _____ to accounts payable.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to inventory in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to _________ in a periodic system, or
to inventory in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to inventory in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to _________ in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to inventory in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to inventory in a perpetual system,
and a credit to accounts _______.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to inventory in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to purchases in a ________ system,
The purchasing cycle will result in a debit
to purchases in a periodic system, or
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to inventory in a __________ system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to inventory in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to __________ in a periodic system, or
to __________ in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to inventory in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to __________ in a ________ system, or
to inventory in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to inventory in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to _________ in a _________ system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to inventory in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to inventory in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to inventory in a perpetual system,
and a credit to accounts payable.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to inventory in a perpetual system,
and a _____ to _________________.
The purchasing cycle will result in a debit
to purchases in a periodic system, or
to inventory in a perpetual system,
and a credit to accounts payable.
For the account affected, the auditor will evaluate whether or not a ____ or process within the system supports one or more of management’s assertions.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
For the account affected, the auditor will __________ whether or not a step or process within the system supports one or more of management’s assertions.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
For the account affected, the auditor will evaluate whether or not a step or _________ within the system supports one or more of management’s assertions.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
For the account affected, the auditor will evaluate whether or not a step or process within the _________ supports one or more of management’s assertions.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
For the account affected, the auditor will evaluate whether or not a step or process within the system __________ one or more of management’s assertions.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports ___ or more of management’s assertions.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s __________.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
For the _________ affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
For the account affected, the ______ will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of ___________’s assertions.
For the account affected, the auditor will evaluate whether or not a step or process within the system supports one or more of management’s assertions.
• A requirement that each recorded sale be supported by an order signed by a customer supports management’s assertion of ____________ in that having a signed purchase order provides evidence that a sale did _____.
• A requirement that each recorded sale be supported by an order signed by a customer supports management’s assertion of occurrence in that having a signed purchase order provides evidence that a sale did occur.
• A requirement that each recorded sale be supported by an order signed by a customer supports management’s _________ of occurrence in that having a signed purchase order provides evidence that a sale did occur.
• A requirement that each recorded sale be supported by an order signed by a customer supports management’s assertion of occurrence in that having a signed purchase order provides evidence that a sale did occur.
• A policy that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence supports the assertion of ____________ in that tracing all sales orders to the accounting records will provide evidence that all sales transactions have been recorded.
• A policy that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence supports the assertion of completeness in that tracing all sales orders to the accounting records will provide evidence that all sales transactions have been recorded.
• A policy that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence supports the assertion of completeness in that _______ all sales orders to the accounting records will provide evidence that all sales transactions have been recorded.
• A policy that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence supports the assertion of completeness in that tracing all sales orders to the accounting records will provide evidence that all sales transactions have been recorded.
• A policy that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence supports the assertion of completeness in that tracing all sales orders to the accounting records will provide evidence that all sales transactions have been __________.
• A policy that the accounting clerk notify a supervisor whenever an internally generated sales order is presented out of sequence supports the assertion of completeness in that tracing all sales orders to the accounting records will provide evidence that all sales transactions have been recorded.
