Balderosa, Janille D.S.

BSA51KB2

1. Please prepare a Sales- Flowchart

2. Identify Audit program for sales

Audit program

SALES Risk Assessment

- To ensure that recorded sales represent goods Inherent Risk High

shipped during the period. Control risk High
- To ensure that all sales and other revenues Detection risk Low
represent all transactions occurred during the Substantive More Extensive
period and properly recorded. testing
- To ensure that sales are presented at financial
statements at appropriate amounts.

Audit Procedures Assertions Evidences

- Vouch entries in sales journal to supporting Existences Sales invoices
 document of sales. Occurrence Sales Order
- Review applicable sales invoices and shipping Completeness Financial
documents to determine the accuracy and statements and
validity. footnotes
- Verify the sales invoices and check that all
customers name , product description and
quantities sold are properly mentioned and
recorded.
- Perform analytical procedures to determine Valuation
whether recorded sale balances appear Allocation
reasonable.
- Recalculate the percentage of customer
discount and returns
- Review financial statements whether sales are Presentation
properly recorded, classified and disclosed. and Disclosures

3. Identify the risk involve

1.Wrong items invoiced
2.Invoice does not add up
3.Delay in posting invoices
4.Errors in posting to Receivables ControlAccount

4.Incorporate an CIS for Sales Operation

Through the use of Computer Information System, the sale operations have been enhanced as
to its effectiveness and efficiency. The processing, classifying and recording transaction that are
previously complex in the manual system are being simplified by using different computer types
of any size. Proper authorizations of different documents and data files in the system. Proper
controls are used to protect and maintain the master file.

5.How to mitigate the risk involved in the CIS Sales environment?

1. Invoice checked against GDN
2. Random invoices arithmetic checked
3. Sequence checks on invoicing to ensure complete posting
4. Control Account reconciled on a regular basis to the Receivables Listing