Identification of Tests of Controls

1154 Words5 Pages
Southeast Shoe Distributor, Inc.:
Identification of Tests of Controls for the Revenue Cycle
(Sales and Cash Receipts)

LEARNING OBJECTIVES
After completing and discussing this assignment you should be able to • Recognize common documents and records used to record transactions in the revenue cycle • Recognize common control activities used to process transactions in the revenue cycle • Identify client control activities that reduce the likelihood of material misstatements • Link client control activities to management assertions • Identify tests of controls for each control activity identified

INTRODUCTION Southeast Shoe Distributor (SSD) is a closely-owned business that was founded 10 years ago
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|Revenue Cycle Planning Audit Program—Identification of Tests of Controls |
|Year Ended: December 31, 200X |
| |Audit Procedures |Initial |Date |W/P Ref. | |
| |1. Obtain and study a copy of the client's policies |BZ |6/12/OX |N/A | |
| |and procedures manuals related to sales and | | | | |
| |cash receipts. | | | | |
| |2. Discuss with and observe client personnel |BZ |6/12/OX |N/A | |
| |performing control activities related to sales | | | | |
| |and cash receipts. | | | | |
| |3. Perform a document walk-through of the client's |BZ |6/12/OX |N/A | |
| |policies and
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