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?© BrainMass Inc. brainmass.com October 1, 2020, 7:58 pm ad1c9bdddf
Account balances included in a revenue and collection cycle include the following:
- customer returns and allowances
- accounts receivable
- provisioning for doubtful accounts
- receipt of cash from trade customers (initial deposit, prepayments, under/over payments, regular receipts, etc.)
Control Procedures for Sales and Shipping and applicable audit assertion:
Controls to ensure valid authorization of sales orders. Approval by the proper level of management of established prices, customers, credit limits and terms. Audit assertion - Authorization and Accuracy of Sales Orders
Controls to ensure accurate ...
The expert examines auditing balances for revenues. Cash receipts control procedures are examined.