THE REVENUE CYCLE: SALES AND CASH COLLECTIONS

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THE REVENUE CYCLE SALES AND CASH COLLECTIONS

• Chapter 10

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Control Examples(Note These are just some
examples -- I want you to think about more and to
think about WHY they are necessary -- e.g., what
could happen if these controls were not there?)

• Authorization -- credit approval
• Prenumber documents -- sales order, shipping
  documents, invoices, credit memos
• Reconciliations -- sales order picking
  ticket/packing slip, physical inventory, sales
  order invoices bills of lading, bank
  statements, subsidiary control account
• Separation of duties -- shipping billing, cash
  receipts recording
• Computer checks -- validity (customer acct s,
  inventory stock s) redundant data checks
  (customer acct customer name, product item
  item description) field checks limit checks
  range checks reasonable checks completeness
  checks