Identification of Tests of Controls

1154 WordsApr 22, 20125 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…show more content…
| |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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