Revenue-Receipt Cycle

Revenue cycle policies are designed to ensure that there are effective internal controls over all
aspects of the cycle. In this flowchart we ensure that all sales are billed and that all billings are
recorded in proper documents.With proper documents, in credit departments, we control the risks
associated with extending credit. Since in revenue cycle, we deal of collecting cash, there is a huge
possibilities of committing fraud in employees. So, proper documents and procedures were used in
credit department to prevent loss or theft of assets, particularly cash or cheks. Report accurate
financial information in jornal and ledger inorder to come up with correct internal control.The firm's
flowchart maintains physical files of source documents is critical to the audit trail. As we walk through
the flowchart, notice that in each department, after completion of the assigned task, one or more
documents are filed as evidence that the task was completed.