Revenue Systems

Question 1

What is the process of the revenue system?

Answer 1

Receipt of customer order
Dispatch of goods to the customer
Invoice the customer
Receipt of payment from the customer

Question 2

What controls are involved in the receipt of customer order?

Answer 2

Pre-numbered sequential standardised order forms
Credit checks completed on customers
Set credit limits

Question 3

What controls are involved in the dispatch of goods to the customer?

Answer 3

Pre-numbered sequential goods dispatch notes for customer to sign on delivery
Checks on quality and quantity of goods

Question 4

What controls are involved in the invoice to the customer?

Answer 4

Sequential pre-numbered sales invoices
Invoices matched to GDN

Question 5

What controls are involved in receipt of payments from the customer?

Answer 5

Match funds to invoice - only unpaid in system
Record cash/cheques to detect and prevent misappropriation

Question 6

What should be segregated duties?

Answer 6

The person who takes the order, fulfils the order, invoices the customer and handles receipts

Question 7

What are control objectives?

Answer 7

Aim, goal or intention of internal controls - to ensure that statements