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Published by: yawgmoth86 on Apr 12, 2012
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Apollo Shoes, Inc Revenue Cycle Process Bridge Working Paper Dec.

31, 2010 Strength/Weakness Activity Control Audit Implication Methods Audit Program Test S-1 Credit Approval on Sales Order Credit authorization reduces risk of bad debt loss and helps to check on validity of Observation We can select a sample of recorded sales invoices and S-2 Prices are taken from unified across the company, minimizing disputes Price is an authorized price Obtain samples of sales invoices and check prices used Recalculate list S-3 Sales are recorded once shipped. Invoice then arebe recorded too early. Productsby A/R personne Revenue recognition. Sales will not samples offor right descriptions shipped will be Comparison Obtain checked sales invoices and compare the reco W-1 Shipping clerks have theclerk can steal from the company to detect saleslarge quatities of goods Dishonest authority to change product quantities on material misstatement. Chec Observation Inventory count by ordering a invoices and custody of

Compare cus erial misstatement.orded sales invoices and look for evidence of credit manager's approval such as signatures. Check any signs of alteration of the sales invoices. . we record sales orders w es and check prices used in the order against those in the price list. Then. es and compare the recording date with the shipping date indicated on the bill of lading and Invoice Copy 4.

Compare customer ordering date with shipping date. Note here that some c ice Copy 4. Compare products billed to the customer with the produc .we record sales orders without proper authorization and compare to customer's account receivable.

We also have to verify the customer names on the order. .le. customer with the products shipping. Note here that some customers paid for goods in advance.

er names on the order. .

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