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    Audit Procedures for the Revenue and collection cycle

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    What account balances are included in a revenue and collection cycle? What specific control procedures should be in place and operating in internal control governing revenue recognition and cash accounting? What assertions are made about classes of transactions and events in the revenue and collection cycle?

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    https://brainmass.com/business/auditing/audit-procedures-for-the-revenue-and-collection-cycle-245986

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    What account balances are included in a revenue and collection cycle?

    Sales, sales discounts, sales returns and allowances, accounts receivable, allowance for doubtful accounts, bad debts and, of course, cash. The revenue cycle doesn't concern itself with the purchase or production of goods, but starts with a sale.

    What specific control procedures should be in place and operating in internal control governing revenue recognition and cash accounting?

    The objectives of a system of internal controls over the revenue cycle include

    1. All recorded transactions have occurred.
    2. All of the transactions that took place are recorded.
    3. The transactions have been recorded accurately.
    4. The transactions have been recorded in the correct accounting period
    5. The transactions have been recorded in the proper accounts.

    Auditing ...

    Solution Summary

    The cited solution provides a good list of the various accounts affected in the revenue cycle. The second part explains the objectives of internal control and then reviews the revenue recognition principles. Last, the audit assertions for the revenue cycle are listed.

    $2.19

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