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CPA AUD Flashcards > AUD 3 Internal Control 13 - 4 The Revenue Cycle (Sales Revenue, AR, Cash Receipts) > Flashcards

AUD 3 Internal Control 13 - 4 The Revenue Cycle (Sales Revenue, AR, Cash Receipts) Flashcards

1
Q

Revenue Cycle
(Sales Revenue / Accounts Receivable / Cash Receipts)

Another way to look at the assertions:

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct and may be relied upon.

A

Revenue Cycle
(Sales Revenue / Accounts Receivable / Cash Receipts)

Another way to look at the assertions:

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct and may be relied upon.

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2
Q

Revenue Cycle

Another way to look at the assertions:

The auditor’s under______ing of the system of internal control is to determine

A

Revenue Cycle

Another way to look at the assertions:

The auditor’s understanding of the system of internal control is to determine

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3
Q

Revenue Cycle

Another way to look at the assertions:

The auditor’s understanding of the system of internal control is to deter____ if the financial statement assertions are correct

A

Revenue Cycle

Another way to look at the assertions:

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct

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4
Q

Revenue Cycle

Another way to look at the assertions:

The auditor’s understanding of the system of internal con____ is to determine if the financial statement assertions are correct

A

Revenue Cycle

Another way to look at the assertions:

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct

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5
Q

Revenue Cycle

Another way to look at the assertions:

The auditor’s understanding of the system of internal control is to determine if the financial statement ass________s are correct

A

Revenue Cycle

Another way to look at the assertions:

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct

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6
Q

Revenue Cycle

Another way to look at the assertions:

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are cor_____

A

Revenue Cycle

Another way to look at the assertions:

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct

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7
Q

Revenue Cycle

Another way to look at the assertions:

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct and may be r___ed upon.

A

Revenue Cycle

Another way to look at the assertions:

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct and may be relied upon.

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8
Q

Revenue Cycle

Another way to look at the assertions:

As indicated, the auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct and may be relied upon.

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence
A

Revenue Cycle

Another way to look at the assertions:

As indicated, the auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct and may be relied upon.

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence
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9
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

• Comp________

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

• Completeness

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10
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Pe_____ C_____
A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
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11
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Ac_______
A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
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12
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Clas________ (Sorted)
A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
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13
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (S___ed)
A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
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14
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Oc_______
A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence
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15
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for

in which case a gap in the sequence may indicate an unrecorded transaction.

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for

in which case a gap in the sequence may indicate an unrecorded transaction.

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16
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for

in which case a gap in the sequence may indicate an unrecorded transaction.

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for

in which case a gap in the sequence may indicate an unrecorded transaction.

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17
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Completeness
– All s___s that occurred were recorded.

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Completeness
– All sales that occurred were recorded.

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18
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

• Completeness
– All sales that oc____ed were recorded.

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

• Completeness
– All sales that occurred were recorded.

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19
Q

Revenue Cycle

• Completeness
– All sales that occurred were re____ed.

A

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

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20
Q

Revenue Cycle

• Completeness
– A__ sales that occurred were recorded.

A

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

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21
Q

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will eva_____ whether prenumbered sales order forms are being used

A

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used

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22
Q

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether pren_____ed sales order forms are being used

A

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used

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23
Q

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being u__d

A

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used

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24
Q

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order f___s are being used

A

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used

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25
Q

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the seq_______ of forms is being accounted for

A

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for

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26
Q

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being acc______ed for

A

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for

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27
Q

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for

in which case a g__ in the sequence may indicate an unrecorded transaction.

A

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for

in which case a gap in the sequence may indicate an unrecorded transaction.

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28
Q

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for

in which case a gap in the sequence may indicate an unre____ed transaction.

A

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for

in which case a gap in the sequence may indicate an unrecorded transaction.

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29
Q

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for

in which case a gap in the sequence may indicate an unrecorded tran_______.

A

Revenue Cycle

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for

in which case a gap in the sequence may indicate an unrecorded transaction.

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30
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Completeness
– All sales that occurred were recorded. The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for in which case a gap in the sequence may indicate an unrecorded transaction.

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with fob shipping terms, or received,
in the case of goods sold with FOB destination terms,

and if the accounting department has a process for making certain that sales are reported in the appropriate period.

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Completeness
– All sales that occurred were recorded. The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for in which case a gap in the sequence may indicate an unrecorded transaction.

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with fob shipping terms, or received,
in the case of goods sold with FOB destination terms,

and if the accounting department has a process for making certain that sales are reported in the appropriate period.

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31
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff
– All tran_______s are recorded in the appropriate period.

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff
– All transactions are recorded in the appropriate period.

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32
Q

Revenue Cycle

• Period Cutoff
– All transactions are re____ed in the appropriate period.

A

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

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33
Q

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the app________ period.

A

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

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34
Q

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate per___.

A

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

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35
Q

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a pro___s for identifying when goods were shipped,

A

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

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36
Q

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for id____ifying when goods were shipped,

A

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

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37
Q

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when g__ds were shipped,

A

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

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38
Q

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were sh___ed,

A

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

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39
Q

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with f__ shipping terms, or received,

A

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with fob shipping terms, or received,

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40
Q

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of g__ds sold with fob shipping terms, or received,

A

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with fob shipping terms, or received,

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41
Q

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods s__d with fob shipping terms, or received,

A

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with fob shipping terms, or received,

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42
Q

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with fob shipping t__ms, or received,

A

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with fob shipping terms, or received,

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43
Q

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with FOB shipping terms, or received,
in the case of goods sold with FOB des_______n terms,

A

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with FOB shipping terms, or received,
in the case of goods sold with FOB destination terms,

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44
Q

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with FOB shipping terms, or received,
in the case of goods sold with FOB destination terms,

and if the acc_____ing department has a process

A

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with FOB shipping terms, or received,
in the case of goods sold with FOB destination terms,

and if the accounting department has a process

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45
Q

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with FOB shipping terms, or received,
in the case of goods sold with FOB destination terms,

and if the accounting department has a pr___ss for making certain

A

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with FOB shipping terms, or received,
in the case of goods sold with FOB destination terms,

and if the accounting department has a process for making certain

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46
Q

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with FOB shipping terms, or received,
in the case of goods sold with FOB destination terms,

and if the accounting department has a process for making certain that sales are re____ed in the appropriate period.

A

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with FOB shipping terms, or received,
in the case of goods sold with FOB destination terms,

and if the accounting department has a process for making certain that sales are reported in the appropriate period.

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47
Q

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with FOB shipping terms, or received,
in the case of goods sold with FOB destination terms,

and if the accounting department has a process for making certain that sales are reported in the appropriate pe___d.

A

Revenue Cycle

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped,

in the case of goods sold with FOB shipping terms, or received,
in the case of goods sold with FOB destination terms,

and if the accounting department has a process for making certain that sales are reported in the appropriate period.

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48
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped, in the case of goods sold with FOB shipping terms, or received,
in the case of goods sold with FOB destination terms,
and if the accounting department has a process for making certain that sales are reported in the appropriate period.

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms and to goods shipped

as well as whether there is a process for checking the mathematical accuracy of documents.

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped, in the case of goods sold with FOB shipping terms, or received,
in the case of goods sold with FOB destination terms,
and if the accounting department has a process for making certain that sales are reported in the appropriate period.

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms and to goods shipped

as well as whether there is a process for checking the mathematical accuracy of documents.

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49
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

• Accuracy
– All transactions are recorded in the appropriate amount.

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

• Accuracy
– All transactions are recorded in the appropriate amount.

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50
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

• Accuracy
– All tran_______s are recorded in the appropriate amount.

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

• Accuracy
– All transactions are recorded in the appropriate amount.

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51
Q

Revenue Cycle

• Accuracy
– All transactions are rec___ed in the appropriate amount.

A

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

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52
Q

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate a____t.

A

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

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53
Q

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the re____ing of sales

A

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales

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54
Q

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves co____ing the quantities on customer order forms

A

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

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55
Q

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the q____ities on customer order forms

A

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

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56
Q

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer or___ forms

A

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

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57
Q

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order f___s

A

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms

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58
Q

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to in______ly prepared sales order forms

A

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms a

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59
Q

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared s___s order forms

A

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms

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60
Q

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms

and to goods sh___ed

A

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms

and to goods shipped

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61
Q

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms

and to goods shipped

as well as whether there is a pro___s

A

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms

and to goods shipped

as well as whether there is a process

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62
Q

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms

and to goods shipped

as well as whether there is a process for ch__ing the mathematical accuracy of documents.

A

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms

and to goods shipped

as well as whether there is a process for checking the mathematical accuracy of documents.

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63
Q

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms

and to goods shipped

as well as whether there is a process for checking the math________ accuracy of documents.

A

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms

and to goods shipped

as well as whether there is a process for checking the mathematical accuracy of documents.

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64
Q

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms

and to goods shipped

as well as whether there is a process for checking the mathematical acc______ of documents.

A

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms

and to goods shipped

as well as whether there is a process for checking the mathematical accuracy of documents.

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65
Q

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms

and to goods shipped

as well as whether there is a process for checking the mathematical accuracy of doc_______s.

A

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms

and to goods shipped

as well as whether there is a process for checking the mathematical accuracy of documents.

66
Q

Revenue Cycle

• Acc____y
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms

and to goods shipped

as well as whether there is a process for checking the mathematical accuracy of documents.

A

Revenue Cycle

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms

to internally prepared sales order forms

and to goods shipped

as well as whether there is a process for checking the mathematical accuracy of documents.

67
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Accuracy
– All transactions are recorded in the appropriate amount.
The auditor will determine if the recording of sales involves comparing the quantities on customer order forms to internally prepared sales order forms and to goods shipped as well as whether there is a process for checking the mathematical accuracy of documents.

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer and are not accompanied by appropriate sales forms from being included in sales.

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Accuracy
– All transactions are recorded in the appropriate amount.
The auditor will determine if the recording of sales involves comparing the quantities on customer order forms to internally prepared sales order forms and to goods shipped as well as whether there is a process for checking the mathematical accuracy of documents.

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer and are not accompanied by appropriate sales forms from being included in sales.

68
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Classification (Sorted)
– Amounts re____ed as sales include only sales of the entity’s goods or services in the ordinary course of business

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

69
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted)
– Am___ts reported as sales

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted)
– Amounts reported as sales

70
Q

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only s__s of the entity’s goods or services

A

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services

71
Q

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include o__y sales of the entity’s goods or services in the ordinary course of business

A

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

72
Q

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the or____ry course of business

A

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

73
Q

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do n__ include proceeds from transactions

A

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions

74
Q

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from tran______s that should not appropriately be reported as sales.

A

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

75
Q

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should n__ appropriately be reported as sales.

A

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

76
Q

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be re____ed as sales.

A

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

77
Q

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will eva_____ whether there is a means of preventing transactions

A

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions

78
Q

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of pr______ting transactions

A

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions

79
Q

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are n__ with a customer

A

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer

80
Q

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a cu______

A

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer

81
Q

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer and are n__ accompanied by appropriate sales forms

A

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer and are not accompanied by appropriate sales forms f

82
Q

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer and are not accompanied by appropriate sales f___s from being included in sales.

A

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer and are not accompanied by appropriate sales forms from being included in sales.

83
Q

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer and are not accompanied by appropriate sales forms from being in____ed in sales.

A

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer and are not accompanied by appropriate sales forms from being included in sales.

84
Q

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer and are not accompanied by appropriate sales forms from being included in s___s.

A

Revenue Cycle

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business

and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer and are not accompanied by appropriate sales forms from being included in sales.

85
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer and are not accompanied by appropriate sales forms from being included in sales.

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order signed by the customer, to indicate that a sale actually occurred as a prerequisite for its being recorded.

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer and are not accompanied by appropriate sales forms from being included in sales.

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order signed by the customer, to indicate that a sale actually occurred as a prerequisite for its being recorded.

86
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Occurrence
– Each recorded s___ actually occurred.

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Occurrence
– Each recorded sale actually occurred.

87
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

• Occurrence
– Ea__ recorded sale actually occurred.

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

• Occurrence
– Each recorded sale actually occurred.

88
Q

Revenue Cycle

• Occurrence
– Each recorded sale actually oc___red.

A

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

89
Q

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will eva______ whether those responsible for recording

A

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording

90
Q

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for re____ing are required to have some form of verification,

A

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

91
Q

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are re_____d to have some form of verification,

A

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

92
Q

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of ver_______,

A

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

93
Q

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order s___ed by the customer,

A

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order signed by the customer,

94
Q

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order signed by the cus______,

A

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order signed by the customer,

95
Q

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order signed by the customer, to indicate that a sale actually occurred as a prerequisite for its being recorded.

A

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order signed by the customer, to indicate that a sale actually occurred as a prerequisite for its being recorded.

96
Q

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order signed by the customer, to indicate that a sale actually oc_____ed

A

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order signed by the customer, to indicate that a sale actually occurred

97
Q

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order signed by the customer, to indicate that a sale actually occurred as a prere_______ for its being recorded.

A

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order signed by the customer, to indicate that a sale actually occurred as a prerequisite for its being recorded.

98
Q

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order signed by the customer, to indicate that a sale actually occurred as a prerequisite for its being re____ed.

A

Revenue Cycle

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order signed by the customer, to indicate that a sale actually occurred as a prerequisite for its being recorded.

99
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order signed by the customer, to indicate that a sale actually occurred as a prerequisite for its being recorded.

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order signed by the customer, to indicate that a sale actually occurred as a prerequisite for its being recorded.

100
Q

Revenue Cycle

Another way to look at the assertions:

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct and may be relied upon.

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for in which case a gap in the sequence may indicate an unrecorded transaction.

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped, in the case of goods sold with fob shipping terms, or received, in the case of goods sold with FOB destination terms, and if the accounting department has a process for making certain that sales are reported in the appropriate period.

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms to internally prepared sales order forms and to goods shipped as well as whether there is a process for checking the mathematical accuracy of documents.

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer and are not accompanied by appropriate sales forms from being included in sales.

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order signed by the customer, to indicate that a sale actually occurred as a prerequisite for its being recorded.

A

Revenue Cycle

Another way to look at the assertions:

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct and may be relied upon.

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Completeness
– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for in which case a gap in the sequence may indicate an unrecorded transaction.

• Period Cutoff
– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped, in the case of goods sold with fob shipping terms, or received, in the case of goods sold with FOB destination terms, and if the accounting department has a process for making certain that sales are reported in the appropriate period.

• Accuracy
– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms to internally prepared sales order forms and to goods shipped as well as whether there is a process for checking the mathematical accuracy of documents.

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer and are not accompanied by appropriate sales forms from being included in sales.

• Occurrence
– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification,

such as a sales order signed by the customer, to indicate that a sale actually occurred as a prerequisite for its being recorded.

101
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Completeness
– All sales that occurred were recorded.

• Period Cutoff
– All transactions are recorded in the appropriate period.

• Accuracy
– All transactions are recorded in the appropriate amount.

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.

• Occurrence
– Each recorded sale actually occurred.

A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness
  • Period Cutoff
  • Accuracy
  • Classification (Sorted)
  • Occurrence

• Completeness
– All sales that occurred were recorded.

• Period Cutoff
– All transactions are recorded in the appropriate period.

• Accuracy
– All transactions are recorded in the appropriate amount.

• Classification (Sorted)
– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.

• Occurrence
– Each recorded sale actually occurred.

102
Q

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness – All sales that occurred were recorded.
  • Period Cutoff – All transactions are recorded in the appropriate period.
  • Accuracy – All transactions are recorded in the appropriate amount.
  • Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.
  • Occurrence – Each recorded sale actually occurred.
A

Revenue Cycle

In relation to sales for events and transactions (CPA-CO):

  • Completeness – All sales that occurred were recorded.
  • Period Cutoff – All transactions are recorded in the appropriate period.
  • Accuracy – All transactions are recorded in the appropriate amount.
  • Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.
  • Occurrence – Each recorded sale actually occurred.
103
Q

The auditor’s understanding of the system of internal ________ is to determine if the financial statement assertions are correct and may be relied upon.

A

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct and may be relied upon.

104
Q

The auditor’s understanding of the system of internal control is to __________ if the financial statement assertions are correct and may be relied upon.

A

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct and may be relied upon.

105
Q

The auditor’s understanding of the system of internal control is to determine if the financial statement ________ are correct and may be relied upon.

A

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct and may be relied upon.

106
Q

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are _______ and may be relied upon.

A

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct and may be relied upon.

107
Q

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct and may be ______ upon.

A

The auditor’s understanding of the system of internal control is to determine if the financial statement assertions are correct and may be relied upon.

108
Q

The following sentences described which of CPA-CO in relation to sales for events and transactions:

“All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for in which case a gap in the sequence may indicate an unrecorded transaction”

A

In relation to sales for events and transactions (CPA-CO):

• Completeness

– All sales that occurred were recorded.

The auditor will evaluate whether prenumbered sales order forms are being used and if the sequence of forms is being accounted for in which case a gap in the sequence may indicate an unrecorded transaction.

109
Q

The following sentences described which of CPA-CO in relation to sales for events and transactions:

“All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped, in the case of goods sold with fob shipping terms, or received, in the case of goods sold with FOB destination terms, and if the accounting department has a process for making certain that sales are reported in the appropriate period.”

A

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff

– All transactions are recorded in the appropriate period.

The auditor will determine if there is a process for identifying when goods were shipped, in the case of goods sold with fob shipping terms, or received, in the case of goods sold with FOB destination terms, and if the accounting department has a process for making certain that sales are reported in the appropriate period.

110
Q

The following sentences described which of CPA-CO in relation to sales for events and transactions:

“All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms to internally prepared sales order forms and to goods shipped as well as whether there is a process for checking the mathematical accuracy of documents.”

A

In relation to sales for events and transactions (CPA-CO):

• Accuracy

– All transactions are recorded in the appropriate amount.

The auditor will determine if the recording of sales involves comparing the quantities on customer order forms to internally prepared sales order forms and to goods shipped as well as whether there is a process for checking the mathematical accuracy of documents.

111
Q

The following sentences described which of CPA-CO in relation to sales for events and transactions:

“Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer and are not accompanied by appropriate sales forms from being included in sales.”

A

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted)

– Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business and do not include proceeds from transactions that should not appropriately be reported as sales.

The auditor will evaluate whether there is a means of preventing transactions that are not with a customer and are not accompanied by appropriate sales forms from being included in sales.

112
Q

The following sentences described which of CPA-CO in relation to sales for events and transactions:

“Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification, such as a sales order signed by the customer, to indicate that a sale actually occurred as a prerequisite for its being recorded.”

A

In relation to sales for events and transactions (CPA-CO):

• Occurrence

– Each recorded sale actually occurred.

The auditor will evaluate whether those responsible for recording are required to have some form of verification, such as a sales order signed by the customer, to indicate that a sale actually occurred as a prerequisite for its being recorded.

113
Q

In relation to sales for events and transactions (CPA-CO):

• C__________ – All sales that occurred were recorded.

A

In relation to sales for events and transactions (CPA-CO):

• Completeness – All sales that occurred were recorded.

114
Q

In relation to sales for events and transactions (CPA-CO):

• __________ – All sales that occurred were recorded.

A

In relation to sales for events and transactions (CPA-CO):

• Completeness – All sales that occurred were recorded.

115
Q

In relation to sales for events and transactions (CPA-CO):

• Completeness – All sales that _______ were recorded.

A

In relation to sales for events and transactions (CPA-CO):

• Completeness – All sales that occurred were recorded.

116
Q

In relation to sales for events and transactions (CPA-CO):

• Completeness – All sales that occurred were ________.

A

In relation to sales for events and transactions (CPA-CO):

• Completeness – All sales that occurred were recorded.

117
Q

In relation to sales for events and transactions (CPA-CO):

• Completeness – ___ sales that occurred were recorded.

A

In relation to sales for events and transactions (CPA-CO):

• Completeness – All sales that occurred were recorded.

118
Q

In relation to sales for events and transactions (CPA-CO):

  • Completeness – All sales that occurred were recorded.
  • P_____ Cutoff – All transactions are recorded in the appropriate period.
A

In relation to sales for events and transactions (CPA-CO):

  • Completeness – All sales that occurred were recorded.
  • Period Cutoff – All transactions are recorded in the appropriate period.
119
Q

In relation to sales for events and transactions (CPA-CO):

  • Completeness – All sales that occurred were recorded.
  • Period C_____ – All transactions are recorded in the appropriate period.
A

In relation to sales for events and transactions (CPA-CO):

  • Completeness – All sales that occurred were recorded.
  • Period Cutoff – All transactions are recorded in the appropriate period.
120
Q

In relation to sales for events and transactions (CPA-CO):

• Period _____ – All transactions are recorded in the appropriate period.

A

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff – All transactions are recorded in the appropriate period.

121
Q

In relation to sales for events and transactions (CPA-CO):

• _______ Cutoff – All transactions are recorded in the appropriate period.

A

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff – All transactions are recorded in the appropriate period.

122
Q

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff – ___ transactions are recorded in the appropriate period.

A

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff – All transactions are recorded in the appropriate period.

123
Q

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff – All ___________ are recorded in the appropriate period.

A

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff – All transactions are recorded in the appropriate period.

124
Q

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff – All transactions are ________ in the appropriate period.

A

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff – All transactions are recorded in the appropriate period.

125
Q

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff – All transactions are recorded in the __________ period.

A

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff – All transactions are recorded in the appropriate period.

126
Q

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff – All transactions are recorded in the appropriate ______.

A

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff – All transactions are recorded in the appropriate period.

127
Q

In relation to sales for events and transactions (CPA-CO):

• ____________ – All transactions are recorded in the appropriate period.

A

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff – All transactions are recorded in the appropriate period.

128
Q

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff – ________________ are recorded in the appropriate period.

A

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff – All transactions are recorded in the appropriate period.

129
Q

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff – All transactions are recorded in the ____________________.

A

In relation to sales for events and transactions (CPA-CO):

• Period Cutoff – All transactions are recorded in the appropriate period.

130
Q

In relation to sales for events and transactions (CPA-CO):

  • Period Cutoff – All transactions are recorded in the appropriate period.
  • A________ – All transactions are recorded in the appropriate amount.
A

In relation to sales for events and transactions (CPA-CO):

  • Period Cutoff – All transactions are recorded in the appropriate period.
  • Accuracy – All transactions are recorded in the appropriate amount.
131
Q

In relation to sales for events and transactions (CPA-CO):

  • Period Cutoff – All transactions are recorded in the appropriate period.
  • _________ – All transactions are recorded in the appropriate amount.
A

In relation to sales for events and transactions (CPA-CO):

  • Period Cutoff – All transactions are recorded in the appropriate period.
  • Accuracy – All transactions are recorded in the appropriate amount.
132
Q

In relation to sales for events and transactions (CPA-CO):

• Accuracy – All ___________ are recorded in the appropriate amount.

A

In relation to sales for events and transactions (CPA-CO):

• Accuracy – All transactions are recorded in the appropriate amount.

133
Q

In relation to sales for events and transactions (CPA-CO):

• Accuracy – ___ transactions are recorded in the appropriate amount.

A

In relation to sales for events and transactions (CPA-CO):

• Accuracy – All transactions are recorded in the appropriate amount.

134
Q

In relation to sales for events and transactions (CPA-CO):

• Accuracy – All transactions are ________ in the appropriate amount.

A

In relation to sales for events and transactions (CPA-CO):

• Accuracy – All transactions are recorded in the appropriate amount.

135
Q

In relation to sales for events and transactions (CPA-CO):

• Accuracy – All transactions are recorded in the appropriate _______.

A

In relation to sales for events and transactions (CPA-CO):

• Accuracy – All transactions are recorded in the appropriate amount.

136
Q

In relation to sales for events and transactions (CPA-CO):

• Accuracy – All transactions are recorded in the ___________ amount.

A

In relation to sales for events and transactions (CPA-CO):

• Accuracy – All transactions are recorded in the appropriate amount.

137
Q

In relation to sales for events and transactions (CPA-CO):

• Accuracy – ________________ are recorded in the appropriate amount.

A

In relation to sales for events and transactions (CPA-CO):

• Accuracy – All transactions are recorded in the appropriate amount.

138
Q

In relation to sales for events and transactions (CPA-CO):

• Accuracy – All transactions are recorded in the ___________________.

A

In relation to sales for events and transactions (CPA-CO):

• Accuracy – All transactions are recorded in the appropriate amount.

139
Q

In relation to sales for events and transactions (CPA-CO):

  • Accuracy – All transactions are recorded in the appropriate amount.
  • C____________ (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.
A

In relation to sales for events and transactions (CPA-CO):

  • Accuracy – All transactions are recorded in the appropriate amount.
  • Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.
140
Q

In relation to sales for events and transactions (CPA-CO):

  • Accuracy – All transactions are recorded in the appropriate amount.
  • _____________ (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.
A

In relation to sales for events and transactions (CPA-CO):

  • Accuracy – All transactions are recorded in the appropriate amount.
  • Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.
141
Q

In relation to sales for events and transactions (CPA-CO):

  • Accuracy – All transactions are recorded in the appropriate amount.
  • Classification (S______ ) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.
A

In relation to sales for events and transactions (CPA-CO):

  • Accuracy – All transactions are recorded in the appropriate amount.
  • Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.
142
Q

In relation to sales for events and transactions (CPA-CO):

• Classification (______) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.

A

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.

143
Q

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts ________ as sales include only sales of the entity’s goods or services in the ordinary course of business.

A

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.

144
Q

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – _________ reported as sales include only sales of the entity’s goods or services in the ordinary course of business.

A

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.

145
Q

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts reported as _____ include only sales of the entity’s goods or services in the ordinary course of business.

A

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.

146
Q

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts reported as sales ______ only sales of the entity’s goods or services in the ordinary course of business.

A

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.

147
Q

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts reported as sales include only ______ of the entity’s goods or services in the ordinary course of business.

A

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.

148
Q

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the _________ course of business.

A

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.

149
Q

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of ________.

A

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.

150
Q

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – _______________ as sales include only sales of the entity’s goods or services in the ordinary course of business.

A

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.

151
Q

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the _________________________.

A

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.

152
Q

In relation to sales for events and transactions (CPA-CO):

• _____________________ – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.

A

In relation to sales for events and transactions (CPA-CO):

• Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.

153
Q

In relation to sales for events and transactions (CPA-CO):

  • Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.
  • O_________ – Each recorded sale actually occurred.
A

In relation to sales for events and transactions (CPA-CO):

  • Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.
  • Occurrence – Each recorded sale actually occurred.
154
Q

In relation to sales for events and transactions (CPA-CO):

  • Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.
  • ___________ – Each recorded sale actually occurred.
A

In relation to sales for events and transactions (CPA-CO):

  • Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.
  • Occurrence – Each recorded sale actually occurred.
155
Q

In relation to sales for events and transactions (CPA-CO):

  • Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.
  • Occurrence – Each ________ sale actually occurred.
A

In relation to sales for events and transactions (CPA-CO):

  • Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.
  • Occurrence – Each recorded sale actually occurred.
156
Q

In relation to sales for events and transactions (CPA-CO):

  • Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.
  • Occurrence – Each recorded ____ actually occurred.
A

In relation to sales for events and transactions (CPA-CO):

  • Classification (Sorted) – Amounts reported as sales include only sales of the entity’s goods or services in the ordinary course of business.
  • Occurrence – Each recorded sale actually occurred.
157
Q

In relation to sales for events and transactions (CPA-CO):

• Occurrence – ____ recorded sale actually occurred.

A

In relation to sales for events and transactions (CPA-CO):

• Occurrence – Each recorded sale actually occurred.

158
Q

In relation to sales for events and transactions (CPA-CO):

• Occurrence – Each recorded sale actually _________.

A

In relation to sales for events and transactions (CPA-CO):

• Occurrence – Each recorded sale actually occurred.

159
Q

In relation to sales for events and transactions (CPA-CO):

• Occurrence – Each _______________ actually occurred.

A

In relation to sales for events and transactions (CPA-CO):

• Occurrence – Each recorded sale actually occurred.

160
Q

In relation to sales for events and transactions (CPA-CO):

• Occurrence – Each recorded sale _______ occurred.

A

In relation to sales for events and transactions (CPA-CO):

• Occurrence – Each recorded sale actually occurred.

CPA AUD Flashcards (62 decks)

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