AUD 3 Internal Control 13 - 5 The Revenue Cycle (Accounts Receivable) Flashcards
1
Q
Revenue Cycle
(Sales Revenue / Accounts Receivable / Cash Receipts)
In relation to accounts receivable balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity. The auditor will want to make certain that receivables are supported by sales orders and shipping documents indicating that the entity has met its performance obligations and is entitled to the payment.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed. The auditor will evaluate this in the same manner as accuracy for sales.
• Completeness
– All receivables are included in the amount reported. The auditor will evaluate this in the same manner as completeness for sales.
• Existence
– All reported accounts receivable are actual claims that resulted from sales. The auditor will evaluate this in the same manner as occurrence for sales.
A
Revenue Cycle
(Sales Revenue / Accounts Receivable / Cash Receipts)
In relation to accounts receivable balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity. The auditor will want to make certain that receivables are supported by sales orders and shipping documents indicating that the entity has met its performance obligations and is entitled to the payment.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed. The auditor will evaluate this in the same manner as accuracy for sales.
• Completeness
– All receivables are included in the amount reported. The auditor will evaluate this in the same manner as completeness for sales.
• Existence
– All reported accounts receivable are actual claims that resulted from sales. The auditor will evaluate this in the same manner as occurrence for sales.
2
Q
Revenue Cycle
(Sales Revenue / Accounts Receivable / Cash Receipts)
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
A
Revenue Cycle
(Sales Revenue / Accounts Receivable / Cash Receipts)
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
3
Q
Revenue Cycle
In relation to accounts receivable b________ (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
A
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
4
Q
Revenue Cycle
In relation to a________ receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
A
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
5
Q
Revenue Cycle
In relation to accounts re________ balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
A
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
6
Q
Revenue Cycle
In relation to accounts receivable balances (RACE):
- R_____ and obligations
- Allocation and Valuation
- Completeness
- Existence
A
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
7
Q
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and ob_______
- Allocation and Valuation
- Completeness
- Existence
A
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
8
Q
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Al_______ and Valuation
- Completeness
- Existence
A
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
9
Q
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Va______
- Completeness
- Existence
A
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
10
Q
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Co_________
- Existence
A
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
11
Q
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Ex________
A
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
12
Q
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
indicating that the entity has met its performance obligations and is entitled to the payment.
A
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
indicating that the entity has met its performance obligations and is entitled to the payment.
13
Q
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
• Rights and obligations
– All amounts re____ed as accounts receivable are owed to the entity.
A
Revenue Cycle
In relation to accounts receivable balances (RACE):
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
14
Q
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All am____s reported as accounts receivable are owed to the entity.
A
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
15
Q
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– A__ amounts reported as accounts receivable are owed to the entity.
A
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
16
Q
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts re________ are owed to the entity.
A
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
17
Q
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are o__d to the entity.
A
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
18
Q
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the en_____.
A
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
19
Q
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are sup____ed by sales orders
A
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders
20
Q
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales or___s
A
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders
21
Q
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and sh____ing documents
A
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
22
Q
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that rece_______s are supported by sales orders and shipping documents
A
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
23
Q
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
indicating that the entity has met its performance obli______s
A
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
indicating that the entity has met its performance obligations
24
Q
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
indicating that the entity has met its per________ obligations and is entitled to the payment.
A
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
indicating that the entity has met its performance obligations and is entitled to the payment.
25
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
indicating that the entity has met its performance obligations and is en_____ed to the payment.
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
indicating that the entity has met its performance obligations and is entitled to the payment.
26
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
indicating that the entity has met its performance obligations and is entitled to the pay____.
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
indicating that the entity has met its performance obligations and is entitled to the payment.
27
Revenue Cycle
A/R balances (RACE):
• R_____s and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
indicating that the entity has met its performance obligations and is entitled to the payment.
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
indicating that the entity has met its performance obligations and is entitled to the payment.
28
Revenue Cycle
A/R balances (RACE):
• Rights and ob_______s
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
indicating that the entity has met its performance obligations and is entitled to the payment.
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
indicating that the entity has met its performance obligations and is entitled to the payment.
29
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
indicating that the entity has met its performance obligations and is entitled to the payment.
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents
indicating that the entity has met its performance obligations and is entitled to the payment.
30
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents indicating that the entity has met its performance obligations and is entitled to the payment.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents indicating that the entity has met its performance obligations and is entitled to the payment.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
31
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
32
Revenue Cycle
A/R balances (RACE):
• Allocation and Valuation
– The amounts re____ed represent the amounts that the entity is actually owed.
Revenue Cycle
A/R balances (RACE):
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
33
Revenue Cycle
A/R balances (RACE):
• Allocation and Valuation
– The amounts reported represent the am_____s that the entity is actually owed.
Revenue Cycle
A/R balances (RACE):
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
34
Revenue Cycle
A/R balances (RACE):
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is ac_____ly owed.
Revenue Cycle
A/R balances (RACE):
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
35
Revenue Cycle
A/R balances (RACE):
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually o__d.
Revenue Cycle
A/R balances (RACE):
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
36
Revenue Cycle
A/R balances (RACE):
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will eva_____ this in the same manner as accuracy for sales.
Revenue Cycle
A/R balances (RACE):
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
37
Revenue Cycle
A/R balances (RACE):
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the sa__ manner as accuracy for sales.
Revenue Cycle
A/R balances (RACE):
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
38
Revenue Cycle
A/R balances (RACE):
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as acc____y for sales.
Revenue Cycle
A/R balances (RACE):
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
39
Revenue Cycle
A/R balances (RACE):
• Allo______ and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
Revenue Cycle
A/R balances (RACE):
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
40
Revenue Cycle
A/R balances (RACE):
• Allocation and Va_______
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
Revenue Cycle
A/R balances (RACE):
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
41
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
42
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
• Completeness
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
• Completeness
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
43
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Completeness
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Completeness
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
44
Revenue Cycle
A/R balances (RACE):
• Completeness
– All rec_______s are included in the amount reported.
Revenue Cycle
A/R balances (RACE):
• Completeness
– All receivables are included in the amount reported.
45
Revenue Cycle
A/R balances (RACE):
• Completeness
– All receivables are in_____ed in the amount reported.
Revenue Cycle
A/R balances (RACE):
• Completeness
– All receivables are included in the amount reported.
46
Revenue Cycle
A/R balances (RACE):
• Completeness
– All receivables are included in the amount re____ed.
Revenue Cycle
A/R balances (RACE):
• Completeness
– All receivables are included in the amount reported.
47
Revenue Cycle
A/R balances (RACE):
• Completeness
– A__ receivables are included in the amount reported.
Revenue Cycle
A/R balances (RACE):
• Completeness
– All receivables are included in the amount reported.
48
Revenue Cycle
A/R balances (RACE):
• Completeness
– All receivables are included in the am___t reported.
Revenue Cycle
A/R balances (RACE):
• Completeness
– All receivables are included in the amount reported.
49
Revenue Cycle
A/R balances (RACE):
• Completeness
– All receivables are included in the amount reported.
The auditor will eva_____ this in the same manner as completeness for sales.
Revenue Cycle
A/R balances (RACE):
• Completeness
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
50
Revenue Cycle
A/R balances (RACE):
• Completeness
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as com________s for sales.
Revenue Cycle
A/R balances (RACE):
• Completeness
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
51
Revenue Cycle
A/R balances (RACE):
• Co_______ess
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
Revenue Cycle
A/R balances (RACE):
• Completeness
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
52
Revenue Cycle
A/R balances (RACE):
• C___________
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
Revenue Cycle
A/R balances (RACE):
• Completeness
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
53
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Completeness
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Completeness
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
54
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Completeness
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for sales.
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Completeness
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for sales.
55
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for sales.
Revenue Cycle
A/R balances (RACE):
* Rights and obligations
* Allocation and Valuation
* Completeness
* Existence
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for sales.
56
Revenue Cycle
A/R balances (RACE):
• Existence
– All re____ed accounts receivable are actual claims that resulted from sales.
Revenue Cycle
A/R balances (RACE):
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
57
Revenue Cycle
A/R balances (RACE):
• Existence
– All reported accounts re________ are actual claims that resulted from sales.
Revenue Cycle
A/R balances (RACE):
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
58
Revenue Cycle
A/R balances (RACE):
• Existence
– A__ reported accounts receivable are ac____ claims that resulted from sales.
Revenue Cycle
A/R balances (RACE):
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
59
Revenue Cycle
A/R balances (RACE):
• Existence
– All reported accounts receivable are actual cl___s that resulted from sales.
Revenue Cycle
A/R balances (RACE):
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
60
Revenue Cycle
A/R balances (RACE):
• Existence
– All reported accounts receivable are actual claims that resulted from s___s.
Revenue Cycle
A/R balances (RACE):
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
61
Revenue Cycle
A/R balances (RACE):
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will eva_______ this in the same manner as occurrence for sales.
Revenue Cycle
A/R balances (RACE):
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for sales.
62
Revenue Cycle
A/R balances (RACE):
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occu______ for sales.
Revenue Cycle
A/R balances (RACE):
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for sales.
63
Revenue Cycle
A/R balances (RACE):
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for s___s.
Revenue Cycle
A/R balances (RACE):
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for sales.
64
Revenue Cycle
A/R balances (RACE):
• Exi______
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for sales.
Revenue Cycle
A/R balances (RACE):
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for sales.
65
Revenue Cycle
A/R balances (RACE):
• E__________
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for sales.
Revenue Cycle
A/R balances (RACE):
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for sales.
66
Revenue Cycle
In relation to accounts receivable balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents indicating that the entity has met its performance obligations and is entitled to the payment.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
• Completeness
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for sales.
Revenue Cycle
In relation to accounts receivable balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents indicating that the entity has met its performance obligations and is entitled to the payment.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
• Completeness
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for sales.
67
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
• Completeness
– All receivables are included in the amount reported.
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
• Completeness
– All receivables are included in the amount reported.
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
68
Revenue Cycle
A/R balances (RACE):
• R_____ and obligations
– All amounts reported as accounts receivable are owed to the entity.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
• Completeness
– All receivables are included in the amount reported.
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
• Completeness
– All receivables are included in the amount reported.
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
69
Revenue Cycle
A/R balances (RACE):
• Rights and o________
– All amounts reported as accounts receivable are owed to the entity.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
• Completeness
– All receivables are included in the amount reported.
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
• Completeness
– All receivables are included in the amount reported.
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
70
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
• A_________ and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
• Completeness
– All receivables are included in the amount reported.
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
• Completeness
– All receivables are included in the amount reported.
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
71
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
• Allocation and V_________
– The amounts reported represent the amounts that the entity is actually owed.
• Completeness
– All receivables are included in the amount reported.
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
• Completeness
– All receivables are included in the amount reported.
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
72
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
• C___________
– All receivables are included in the amount reported.
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
• Completeness
– All receivables are included in the amount reported.
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
73
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
• Completeness
– All receivables are included in the amount reported.
• E________
– All reported accounts receivable are actual claims that resulted from sales.
Revenue Cycle
A/R balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
• Completeness
– All receivables are included in the amount reported.
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
74
Revenue Cycle
In obtaining an und_______ing, the auditor should consider activities that may occur outside of the entity.
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
75
Revenue Cycle
In obtaining an understanding, the auditor should consider ac____ies that may occur outside of the entity.
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
76
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may oc___outside of the entity.
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
77
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur out____ of the entity.
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
78
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments di____ly to a bank lockbox instead of to the company itself,
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
79
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a b__k lockbox instead of to the company itself,
thereby eliminating access to cash and checks by any of the employees in the revenue cycle.
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating access to cash and checks by any of the employees in the revenue cycle.
80
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating access to c__h and checks by any of the employees in the revenue cycle.
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating access to cash and checks by any of the employees in the revenue cycle.
81
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby el______ting access to cash and checks by any of the employees in the revenue cycle.
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating access to cash and checks by any of the employees in the revenue cycle.
82
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating access to cash and ch__ks by any of the employees in the revenue cycle.
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating access to cash and checks by any of the employees in the revenue cycle.
83
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating access to cash and checks by any of the em___ees in the revenue cycle.
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating access to cash and checks by any of the employees in the revenue cycle.
84
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating a___ss to cash and checks by any of the employees in the revenue cycle.
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating access to cash and checks by any of the employees in the revenue cycle.
85
Revenue Cycle
In o______ing an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating access to cash and checks by any of the employees in the revenue cycle.
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating access to cash and checks by any of the employees in the revenue cycle.
86
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating access to cash and checks by any of the employees in the revenue cycle.
This obviously strengthens the internal co_____ over cash receipts.
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating access to cash and checks by any of the employees in the revenue cycle.
This obviously strengthens the internal control over cash receipts.
87
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating access to cash and checks by any of the employees in the revenue cycle.
This obviously stre______ns the internal control over cash receipts.
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating access to cash and checks by any of the employees in the revenue cycle.
This obviously strengthens the internal control over cash receipts.
88
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating access to cash and checks by any of the employees in the revenue cycle.
This obviously strengthens the internal control over cash rec_____s.
Revenue Cycle
In obtaining an understanding, the auditor should consider activities that may occur outside of the entity.
For example, the company may direct customers to send payments directly to a bank lockbox instead of to the company itself,
thereby eliminating access to cash and checks by any of the employees in the revenue cycle.
This obviously strengthens the internal control over cash receipts.
89
Segregation of Duties in the Revenue Cycle
For proper segr________ of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
Segregation of Duties in the Revenue Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
90
Segregation of Duties in the Revenue Cycle
For proper segregation of duties, aut_______ of transactions, the recording function, and custody of assets should be kept separate.
Segregation of Duties in the Revenue Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
91
Segregation of Duties in the Revenue Cycle
For proper segregation of duties, authorization of tran_______s, the recording function, and custody of assets should be kept separate.
Segregation of Duties in the Revenue Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
92
Segregation of Duties in the Revenue Cycle
For proper segregation of duties, authorization of transactions, the re____ing function, and custody of assets should be kept separate.
Segregation of Duties in the Revenue Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
93
Segregation of Duties in the Revenue Cycle
For proper segregation of duties, authorization of transactions, the recording function, and c___ody of assets should be kept separate.
Segregation of Duties in the Revenue Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
94
Segregation of Duties in the Revenue Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept sepa____.
Segregation of Duties in the Revenue Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
95
Segregation of Duties in the Revenue Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
• The functions of au______ing sales on account and authorizing credits to accounts receivable
Segregation of Duties in the Revenue Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
• The functions of authorizing sales on account and authorizing credits to accounts receivable
96
Segregation of Duties in the Revenue Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
• The functions of authorizing s___s on account and authorizing credits to accounts receivable
Segregation of Duties in the Revenue Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
• The functions of authorizing sales on account and authorizing credits to accounts receivable
97
Segregation of Duties in the Revenue Cycle
• The functions of authorizing sales on account and authorizing cre___s to accounts receivable
Segregation of Duties in the Revenue Cycle
• The functions of authorizing sales on account and authorizing credits to accounts receivable
98
Segregation of Duties in the Revenue Cycle
• The functions of authorizing sales on account and authorizing credits to accounts rec________ that may result from sales discounts,
Segregation of Duties in the Revenue Cycle
• The functions of authorizing sales on account and authorizing credits to accounts receivable that may result from sales discounts,
99
Segregation of Duties in the Revenue Cycle
• The functions of authorizing sales on account and authorizing credits to accounts receivable that may result from sales dis_______s, sales returns, sales allowances,
Segregation of Duties in the Revenue Cycle
• The functions of authorizing sales on account and authorizing credits to accounts receivable that may result from sales discounts, sales returns, sales allowances,
100
Segregation of Duties in the Revenue Cycle
• The functions of authorizing sales on account and authorizing credits to accounts receivable that may result from sales discounts, sales re____s, sales allowances, or write offs, should be segregated.
Segregation of Duties in the Revenue Cycle
• The functions of authorizing sales on account and authorizing credits to accounts receivable that may result from sales discounts, sales returns, sales allowances, or write offs, should be segregated.
101
Segregation of Duties in the Revenue Cycle
• The functions of authorizing sales on account and authorizing credits to accounts receivable that may result from sales discounts, sales returns, sales allo_____s, or write offs, should be segregated.
Segregation of Duties in the Revenue Cycle
• The functions of authorizing sales on account and authorizing credits to accounts receivable that may result from sales discounts, sales returns, sales allowances, or write offs, should be segregated.
102
Segregation of Duties in the Revenue Cycle
• The functions of authorizing sales on account and authorizing credits to accounts receivable that may result from sales discounts, sales returns, sales allowances, or w____ offs, should be segregated.
Segregation of Duties in the Revenue Cycle
• The functions of authorizing sales on account and authorizing credits to accounts receivable that may result from sales discounts, sales returns, sales allowances, or write offs, should be segregated.
103
Segregation of Duties in the Revenue Cycle
• The functions of authorizing sales on account and authorizing credits to accounts receivable that may result from sales discounts, sales returns, sales allowances, or write offs, should be se_________d.
Segregation of Duties in the Revenue Cycle
• The functions of authorizing sales on account and authorizing credits to accounts receivable that may result from sales discounts, sales returns, sales allowances, or write offs, should be segregated.
104
Segregation of Duties in the Revenue Cycle
* The functions of authorizing sales on account and authorizing credits to accounts receivable that may result from sales discounts, sales returns, sales allowances, or write offs, should be segregated.
* The function of au_______ing sales, recording accounts receivable, and having custody of inventory should be segregated.
Segregation of Duties in the Revenue Cycle
* The functions of authorizing sales on account and authorizing credits to accounts receivable that may result from sales discounts, sales returns, sales allowances, or write offs, should be segregated.
* The function of authorizing sales, recording accounts receivable, and having custody of inventory should be segregated.
105
Segregation of Duties in the Revenue Cycle
• The function of authorizing sales, re____ing accounts receivable, and having custody of inventory should be segregated.
Segregation of Duties in the Revenue Cycle
• The function of authorizing sales, recording accounts receivable, and having custody of inventory should be segregated.
106
Segregation of Duties in the Revenue Cycle
• The function of authorizing sales, recording accounts rec_______e, and having custody of inventory should be segregated.
Segregation of Duties in the Revenue Cycle
• The function of authorizing sales, recording accounts receivable, and having custody of inventory should be segregated.
107
Segregation of Duties in the Revenue Cycle
• The function of authorizing sales, recording accounts receivable, and having cu___dy of inventory should be segregated.
Segregation of Duties in the Revenue Cycle
• The function of authorizing sales, recording accounts receivable, and having custody of inventory should be segregated.
108
Segregation of Duties in the Revenue Cycle
• The function of authorizing sales, recording accounts receivable, and having custody of in____ory should be segregated.
Segregation of Duties in the Revenue Cycle
• The function of authorizing sales, recording accounts receivable, and having custody of inventory should be segregated.
109
Segregation of Duties in the Revenue Cycle
• The function of authorizing sales, recording accounts receivable, and having custody of inventory should be se________ed.
Segregation of Duties in the Revenue Cycle
• The function of authorizing sales, recording accounts receivable, and having custody of inventory should be segregated.
110
Segregation of Duties in the Revenue Cycle
* The function of authorizing sales, recording accounts receivable, and having custody of inventory should be segregated.
* The functions of the ca_____r who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
Segregation of Duties in the Revenue Cycle
* The function of authorizing sales, recording accounts receivable, and having custody of inventory should be segregated.
* The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
111
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has c____dy of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
112
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the re____ing of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
113
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and pr_____ing the bank reconciliation (comparison) should be segregated.
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
114
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank rec_______on (comparison) should be segregated.
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
115
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (c_________n) should be segregated.
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
116
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle la___ amounts of cash during the normal course of operations,
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations,
117
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of c__h during the normal course of operations,
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations,
118
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bo__s (insurance and background searches) for employees who handle cash is a common practice.
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
119
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (ins________ and background searches) for employees who handle cash is a common practice.
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
120
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and backg_______ searches) for employees who handle cash is a common practice.
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
121
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle c__h is a common practice.
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
122
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a com___ practice.
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
123
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowl____ that bonding companies often prosecute those accused of dishonest acts
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts
124
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowledge that bo__ing companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
125
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowledge that bonding companies often prosecute those accused of dish_____ acts can act as an effective deterrent to theft and fraud.
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
126
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowledge that bonding companies often pros_____e those accused of dishonest acts can act as an effective deterrent to theft and fraud.
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
127
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an eff______ deterrent to theft and fraud.
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
128
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to th___ and fraud.
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
129
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and f___d.
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
130
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
• Em___yees responsible for authorizing sales approval, issuance of credit memos and bad debt write-offs should be denied access to cash.
Segregation of Duties in the Revenue Cycle
• The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
• Employees responsible for authorizing sales approval, issuance of credit memos and bad debt write-offs should be denied access to cash.
131
Segregation of Duties in the Revenue Cycle
• Employees responsible for au______ing sales approval, issuance of credit memos and bad debt write-offs should be denied access to cash.
Segregation of Duties in the Revenue Cycle
• Employees responsible for authorizing sales approval, issuance of credit memos and bad debt write-offs should be denied access to cash.
132
Segregation of Duties in the Revenue Cycle
• Employees responsible for authorizing sales approval, issuance of cre___ memos and bad debt write-offs should be denied access to cash.
Segregation of Duties in the Revenue Cycle
• Employees responsible for authorizing sales approval, issuance of credit memos and bad debt write-offs should be denied access to cash.
133
Segregation of Duties in the Revenue Cycle
• Employees responsible for authorizing sales approval, is_____ce of credit memos and bad debt write-offs should be denied access to cash.
Segregation of Duties in the Revenue Cycle
• Employees responsible for authorizing sales approval, issuance of credit memos and bad debt write-offs should be denied access to cash.
134
Segregation of Duties in the Revenue Cycle
• Employees responsible for authorizing sales approval, issuance of credit memos and b__ debt write-offs should be denied access to cash.
Segregation of Duties in the Revenue Cycle
• Employees responsible for authorizing sales approval, issuance of credit memos and bad debt write-offs should be denied access to cash.
135
Segregation of Duties in the Revenue Cycle
• Employees responsible for authorizing sales approval, issuance of credit memos and bad debt write-offs should be d__ied access to cash.
Segregation of Duties in the Revenue Cycle
• Employees responsible for authorizing sales approval, issuance of credit memos and bad debt write-offs should be denied access to cash.
136
Segregation of Duties in the Revenue Cycle
• Employees responsible for authorizing sales approval, issuance of credit memos and bad debt write-offs should be denied access to c__h.
Segregation of Duties in the Revenue Cycle
• Employees responsible for authorizing sales approval, issuance of credit memos and bad debt write-offs should be denied access to cash.
137
Segregation of Duties in the Revenue Cycle
• Employees responsible for authorizing sales approval, issuance of credit memos and bad debt wr___-offs should be denied access to cash.
Segregation of Duties in the Revenue Cycle
• Employees responsible for authorizing sales approval, issuance of credit memos and bad debt write-offs should be denied access to cash.
138
Segregation of Duties in the Revenue Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
* The functions of authorizing sales on account and authorizing credits to accounts receivable that may result from sales discounts, sales returns, sales allowances, or write offs, should be segregated.
* The function of authorizing sales, recording accounts receivable, and having custody of inventory should be segregated.
* The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
• Employees responsible for authorizing sales approval, issuance of credit memos and bad debt write-offs should be denied access to cash.
Segregation of Duties in the Revenue Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
* The functions of authorizing sales on account and authorizing credits to accounts receivable that may result from sales discounts, sales returns, sales allowances, or write offs, should be segregated.
* The function of authorizing sales, recording accounts receivable, and having custody of inventory should be segregated.
* The functions of the cashier who has custody of the cash, the recording of cash receipts, and preparing the bank reconciliation (comparison) should be segregated.
In businesses that handle large amounts of cash during the normal course of operations, obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
• Employees responsible for authorizing sales approval, issuance of credit memos and bad debt write-offs should be denied access to cash.
139
In relation to accounts receivable balances (RACE):
• _______ and __________
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents indicating that the entity has met its performance obligations and is entitled to the payment.
In relation to accounts receivable balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents indicating that the entity has met its performance obligations and is entitled to the payment.
140
In relation to accounts receivable balances (RACE):
• _______________________
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents indicating that the entity has met its performance obligations and is entitled to the payment.
In relation to accounts receivable balances (RACE):
• Rights and obligations
– All amounts reported as accounts receivable are owed to the entity.
The auditor will want to make certain that receivables are supported by sales orders and shipping documents indicating that the entity has met its performance obligations and is entitled to the payment.
141
A/R balances (RACE):
• ___________ and _____________
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
A/R balances (RACE):
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
142
A/R balances (RACE):
• ________________________
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
A/R balances (RACE):
• Allocation and Valuation
– The amounts reported represent the amounts that the entity is actually owed.
The auditor will evaluate this in the same manner as accuracy for sales.
143
A/R balances (RACE):
• C____________
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
A/R balances (RACE):
• Completeness
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
144
A/R balances (RACE):
• ______________
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
A/R balances (RACE):
• Completeness
– All receivables are included in the amount reported.
The auditor will evaluate this in the same manner as completeness for sales.
145
A/R balances (RACE):
• E__________
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for sales.
A/R balances (RACE):
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for sales.
146
A/R balances (RACE):
• ___________
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for sales.
A/R balances (RACE):
• Existence
– All reported accounts receivable are actual claims that resulted from sales.
The auditor will evaluate this in the same manner as occurrence for sales.
147
What accounting functions should be kept separated?
```
For proper segregation of duties,
___________ of transactions,
the recording function, and
custody of assets
should be kept separate.
```
What accounting functions should be kept separated?
```
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
```
148
What accounting functions should be kept separated?
```
For proper segregation of duties,
authorization of transactions,
the __________ function, and
custody of assets
should be kept separate.
```
What accounting functions should be kept separated?
```
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
```
149
What accounting functions should be kept separated?
```
For proper segregation of duties,
authorization of transactions,
the recording function, and
________ of assets
should be kept separate.
```
What accounting functions should be kept separated?
```
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
```
150
What accounting functions should be kept separated?
```
For proper segregation of duties,
___________ of transactions,
the __________ function, and
_______ of assets
should be kept separate.
```
What accounting functions should be kept separated?
```
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
```
151
What accounting functions should be kept separated?
```
For proper segregation of duties,
authorization of ____________,
the recording function, and
custody of assets
should be kept separate.
```
What accounting functions should be kept separated?
```
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
```
152
What accounting functions should be kept separated?
```
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of _______
should be kept separate.
```
What accounting functions should be kept separated?
```
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
```
153
What accounting functions should be kept separated?
What accounting functions should be kept separated?
```
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
```
154
• The functions of
__________ sales on account and
__________ credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
155
• The functions of
authorizing _____ on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
156
• The functions of
authorizing sales on account and
authorizing ______ to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
157
• The functions of
authorizing sales __________ and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
158
• The functions of
authorizing sales on account and
authorizing credits to _________________
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
159
• The functions of
__________ sales ___________ and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
160
• The functions of
authorizing ________________ and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
161
• The functions of
authorizing sales on account and
_________ credits to _______________
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
162
• The functions of
authorizing sales on account and
authorizing ______ to _________________
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
163
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
_____ discounts,
_____ returns,
_____ allowances,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
164
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales ________,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
165
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales ______,
sales allowances,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
166
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales _________,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
167
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or _____ offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
168
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write ____,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
169
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
____________,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
170
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
__________,
sales allowances,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
171
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
___________,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
172
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or _________,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
173
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be _____________.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
174
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may _____ from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
175
• The _________ of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
• The functions of
authorizing sales on account and
authorizing credits to accounts receivable
```
that may result from
sales discounts,
sales returns,
sales allowances,
or write offs,
```
should be segregated.
176
• The function of
__________ sales,
recording accounts receivable,
and having custody of inventory
should be segregated.
• The function of
authorizing sales,
recording accounts receivable,
and having custody of inventory
should be segregated.
177
• The function of
authorizing sales,
_________ accounts receivable,
and having custody of inventory
should be segregated.
• The function of
authorizing sales,
recording accounts receivable,
and having custody of inventory
should be segregated.
178
• The function of
authorizing sales,
recording accounts receivable,
and having ________ of inventory
should be segregated.
• The function of
authorizing sales,
recording accounts receivable,
and having custody of inventory
should be segregated.
179
• The function of
authorizing ______,
recording accounts receivable,
and having custody of inventory
should be segregated.
• The function of
authorizing sales,
recording accounts receivable,
and having custody of inventory
should be segregated.
180
• The function of
authorizing sales,
recording accounts _________,
and having custody of inventory
should be segregated.
• The function of
authorizing sales,
recording accounts receivable,
and having custody of inventory
should be segregated.
181
• The function of
authorizing sales,
recording accounts receivable,
and having custody of _________
should be segregated.
• The function of
authorizing sales,
recording accounts receivable,
and having custody of inventory
should be segregated.
182
• The function of
_______________,
recording accounts receivable,
and having custody of inventory
should be segregated.
• The function of
authorizing sales,
recording accounts receivable,
and having custody of inventory
should be segregated.
183
• The function of
authorizing sales,
_________ accounts __________,
and having custody of inventory
should be segregated.
• The function of
authorizing sales,
recording accounts receivable,
and having custody of inventory
should be segregated.
184
• The function of
authorizing sales,
recording accounts receivable,
and having ________ of __________
should be segregated.
• The function of
authorizing sales,
recording accounts receivable,
and having custody of inventory
should be segregated.
185
• The function of
authorizing sales,
recording _________ receivable,
and having custody of inventory
should be segregated.
• The function of
authorizing sales,
recording accounts receivable,
and having custody of inventory
should be segregated.
186
• The function of
authorizing sales,
recording accounts receivable,
and ________ custody of inventory
should be segregated.
• The function of
authorizing sales,
recording accounts receivable,
and having custody of inventory
should be segregated.
187
• The _________ of
authorizing sales,
recording accounts receivable,
and having custody of inventory
should be segregated.
• The function of
authorizing sales,
recording accounts receivable,
and having custody of inventory
should be segregated.
188
• The functions of the cashier who has
_______ of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
189
• The functions of the cashier who has
custody of the ____,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
190
• The functions of the cashier who has
custody of the cash,
the ________ of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
191
• The functions of the cashier who has
custody of the cash,
the recording of ____receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
192
• The functions of the cashier who has
_______ of the ____,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
193
• The functions of the cashier who has
custody of the cash,
the ________ of cash _______,
and preparing the bank reconciliation (comparison)
should be segregated.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
194
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and ________ the bank reconciliation (comparison)
should be segregated.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
195
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank ___________ (comparison)
should be segregated.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
196
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (__________)
should be segregated.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
197
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the ____ reconciliation (comparison)
should be segregated.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
198
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and _________ the bank ___________ (comparison)
should be segregated.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
199
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be ___________.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
200
• The functions of the cashier who has
_______ of the cash,
the __________ of cash receipts,
and preparing the bank reconciliation (__________)
should be segregated.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
201
• The functions of the _______ who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
202
• The _________ of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
203
• The functions of the cashier who has
custody of the cash,
the recording of ____________,
and preparing the bank reconciliation (comparison)
should be segregated.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
204
• The functions of the cashier who has
custody of the cash,
the ________ of _____________,
and preparing the bank reconciliation (comparison)
should be segregated.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
205
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the _______________ (___________)
should be segregated.
• The functions of the cashier who has
custody of the cash,
the recording of cash receipts,
and preparing the bank reconciliation (comparison)
should be segregated.
206
Employee knowledge that bonding companies often _________ those accused of dishonest acts can act as an effective deterrent to theft and fraud.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
207
Employee knowledge that ________ companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
208
Employee knowledge that bonding companies often prosecute those accused of _________ acts can act as an effective deterrent to theft and fraud.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
209
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective _________ to theft and fraud.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
210
________ knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
Employee knowledge that bonding companies often prosecute those accused of dishonest acts can act as an effective deterrent to theft and fraud.
211
In businesses that handle large amounts of ____ during the normal course of operations,
obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
In businesses that handle large amounts of cash during the normal course of operations,
obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
212
In businesses that handle large amounts of cash during the normal course of operations,
obtaining ______ (insurance and background searches) for employees who handle cash is a common practice.
In businesses that handle large amounts of cash during the normal course of operations,
obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
213
In businesses that handle large amounts of cash during the normal course of operations,
obtaining bonds (insurance and ____________ searches) for employees who handle cash is a common practice.
In businesses that handle large amounts of cash during the normal course of operations,
obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
214
In businesses that handle large amounts of cash during the normal course of operations,
obtaining bonds (insurance and background searches) for employees who handle ____ is a common practice.
In businesses that handle large amounts of cash during the normal course of operations,
obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
215
In businesses that handle large amounts of cash during the normal course of operations,
obtaining bonds (_________ and background searches) for employees who handle cash is a common practice.
In businesses that handle large amounts of cash during the normal course of operations,
obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
216
In businesses that handle large amounts of cash during the normal course of operations,
obtaining bonds (insurance and background searches) for __________ who handle cash is a common practice.
In businesses that handle large amounts of cash during the normal course of operations,
obtaining bonds (insurance and background searches) for employees who handle cash is a common practice.
217
• Employees responsible for
__________ sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
218
• ___________ responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
219
• Employees responsible for
authorizing _____ approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
220
• Employees responsible for
authorizing sales _________,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
221
• Employees responsible for
authorizing sales approval,
issuance of _____ memos and bad debt write-offs
should be denied access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
222
• Employees responsible for
authorizing sales approval,
issuance of credit ______ and bad debt write-offs
should be denied access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
223
• Employees responsible for
authorizing sales approval,
issuance of credit memos and ___ debt write-offs
should be denied access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
224
• Employees responsible for
authorizing sales approval,
issuance of credit memos and _________ write-offs
should be denied access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
225
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt _____-offs
should be denied access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
226
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-____
should be denied access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
227
• Employees responsible for
authorizing sales approval,
________ of credit memos and bad debt write-offs
should be denied access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
228
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be ________ access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
229
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to ____.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
230
• Employees responsible for
authorizing sales approval,
issuance of ___________ and bad debt write-offs
should be denied access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
231
• Employees responsible for
authorizing sales approval,
_________ of ___________ and bad debt write-offs
should be denied access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
232
• Employees responsible for
authorizing _____________,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
233
• Employees responsible for
authorizing sales approval,
issuance of credit memos and __________________
should be denied access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
234
• Employees responsible for
authorizing sales approval,
_________ of credit memos and ___________________
should be denied access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
235
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied _______ to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
236
• Employees ____________ for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
• Employees responsible for
authorizing sales approval,
issuance of credit memos and bad debt write-offs
should be denied access to cash.
