sts = Tramsoten Opes Test feos CHAPTER4 (Cheer «= ranencon Ces — Test at Contos TRANSACTION CYCLES - TEST OF CONTROLS AVENUE AND RECEPTOWERE i Basis, | Vacsures ate dred to customers in excbang fr Toricoverview Jie sper datas dec mnsation lea be ey ons foreach transaction cycle: a E LEARNING OBJECTIVES: [Ane sting this chaper, you shoal be et: {Describe the deren categories of tanscton ce. 2 Resi the forms or docusents wed neler partes 2 ety deter he acne epremens nck anion 4 Hesiypossibeconvats nen warscton ye ‘TRANSACTION CYCLES Fianssctionaycos are Ge meaas rough we an ema ATEN aeael onion ol oo a2 a Be tomer, clon ot area ir cn ied prod for ae, and penn emplges fr sees frente (pation tres arom a Proms fre payee inter py ahr esses dated to them ani aed ce te twin evens | Sloat yenislesrours, Swans count 1 Rteenae allowed bsnl Bod dees expsnor ‘oat Tg ais | er pra ae Dosned | Revense 4] sateen carear enter |S emte {] Stemocreomsotor Wass | + sips itn 1 Hossein restabl and gone) 1) | iam oerertnt 1 desing sated gener) 1 eimai nse ren i ei oie or Formgor cone eo nad proces Remetnnteee d ee ae | ee Le au Gear os) of ats ordered = Credit cnet Train det eee ee ee ae Ferrera cpr dive nterrltd maar le: seas)” | Sespemenetms ih a Seg —) ener |e] Tote Saag | vai pe mo aa eric ace en Seat eee Oe oom ee oa gcrene “sai | T sas goods aaa seices Sarr ei] | Beoen he oy ‘schureaent {payment fr be ons ices squid niga aarti carne ta renter tone eee ee eee [eee | Sao perrel 2 fmt fo ern aed ames | set Reet te | ae T aswanting ee = Pela ee Stee ooo hah ton 5S Tas —| Bat —s wig ——] oot = ie [ican [stn ore: cont: tats vat tn ch oe |e =e [eam [eos | (eee | See tea ren eu es eta ace Sot ree [cna | | Semin pare tnne x by ecco ‘ Thvasme and vsllbe povided e erater 4 Teanstan Gye Ts of Gt =e S axa — | pee | a, ‘ater raenin de Tete trom, €. tment conldyrnert moire STASI ta ste of rt and ut Terk note Fro dovarvents proceed ‘ee te eo 4. The department that initiated the eracessing approves the Form, Ce os 5 he eornent sa ne tera ooze msg Ts awe cee er gr fas css tat Tos shal be bed tthe ll pce agaen™ | et md el Surin 2SETENE analy oes | a, $B ttnon ffs des at ees mean ard cn cae ty coal a ore Proriel canbe aaa Seca a te en 4 Secdpuoment a GE reed or pmo rm sa ee ee iar Se eamgi Poy ane teres ny Soe oar aac ea, yeaa sua ot enti of Depart abe evens le energy te Taegan St Stace Soro mas emits spn $e enc amir ‘Primary objective: To provide reasonable assurance that alt shipaments Tamas [come ae Seat seselorustnsem ae Tigummarmsvatbges”. [amen eer ne arian ene os Leica eae Tamer Aer wer wa Sse ‘Raps racer an dtr | Se pent em ene See dp | aac ts a emi op tess cee png |" neon coments Te sehr rey | cite Ser x is cme S.febinscpy inunttedarer fhe |» ety mats isc of shored see rete ec ot See pds casters as to he stats eerder “sins deparinnt hat ga ees ace “in spre sales oder lig © at earet ‘ee SESE, ausaepauiong Posriblecentrls ———] tag department Pay eect To provide resable aso a iting are airman serie] Corson conta adopt By Sale See ease i fl aaa 2a atnestenon | ne — ai HG ced pemwme | tis exis act “beeiraierams | samt ates ab tose! satmandector stthesaes department Spee eer ge ail heat ie seers | ae am : Soe aceon cee —— arpa rasan nt)” atte preaton ok tse appevedirtrto eee nsec | fram rgeetee eel)Shptarg «accion cytes — Test tent sacon Cys — Tes of Conve documents received, nated and processed 1 Ineaseotdelinguct acount sock acral We reviewed 1 Mieiged to Be emctease yen stories to wre shoal besentn eons rceraic and ened Accounting Sales pears andotlowances A Sales department ; 1 Testews curses request fr returns and wanes 1 ReSeSesretnens nal aBiownnces and prepares credit remy Seg eanied customer acute reebrabe (be recording, Tame ony contr (foe retur) 2 mentory entre! Ineo Ste received throsgh the receiving department sng ‘Seaiernene 3 account ‘Seieenenns updates dover rounds upon recipe of goods ang ‘iefanraly surarares to be forwarded tngenealaceousng REEDS reste: place records Based om the reds em Aine ad ponpares ly semmaries to be faraniedl 10 weber Sane Genero spaces dally summartes frm inestory nd eran ‘Sanebte ten apéstes penal ledges. [EXPENDITURE AND DISBURSEMENT CYCLE Dasness | Too major besten ae Paice | Uncouoes are anpured ram vendors In exchange fr ion Tapendiure toe ay Spare wn then) forte {Acute “Ucn entry and pe pes eat form [Despina St rae] theta Grimes | ert |fequction) | roqet Fags | Desees evo | ee Berto Gey | ron wang | Deseves en ca ren secede, | dpe | + Aet ‘oni =e Tipping | Deere te goals | Vator ra] + ah orument | be tipped aot oeves | reared | "department cotati Frees [Desist pods | Wedor | > Reon ole Sol amouat ont te thet alpamest a Dai Surman Teas —] + cane Parmares | tomcat recoded [pratt (he | "soso ‘arn the day by he | cases etcapenee | |e tr “Summary of Fnetons of Departments in Expenditure Cycle 2A User department Proaresrston sip toe forwarded t> purchasing andl accounts 9, Ramiseomrinets Famay sees Tomet the pei neds ofthe user department st fielestporsilecast ‘tivities sie aT TRESS sped ruler wip Comme contals sloped By Tir wn uparonont ‘rn ees In he depen adnate vendor ad nope wit | Ice ems Parhasng paren. bas “28 ‘xPreres purchase orders and |” ee uti communicate Garin Tepe feb | ewer aatineeedeoe |e ‘SUpts casas rte the stones « Ey compares purchase pret marie pie &Chanter ¢-Transcon oles = Test of Conta & Receiving departient ae eras provide resonable surance that recelved goods be bse on approved puree der sete Posie coals “Fir parciar nde ml are [Common cones sda recived fierest oes ds depart elpon veel comms al chocs te | nde sos opr qin and To ensure atthe reeling Sen wl coun and el sheet aed_comparet_purchae| the gots rece the pursing em psy and pring |_teparonet om 8 Dank porchan| eure rom eer oer scProorrrecng remorse fororset""topurcig 84 Sometime or Sapering incu (coe etre peng apg Sscument ra ear) ©. Accounts payable department ‘zug atece so provi soa ssurnce hat payments wl yo det sess Taser sal mp Pain | wy Tip perauve codes chong rope | erent teen this department _eoaplo 4~ Trstcton Cys ot of Cons eck one cern amt Stowe ens eaee Ae boedne ented pe | hn sl be re HUMAN RESOURCES AND PAYROLL. EVEL “man esoures and payroll ir cotnaion of te expen a EEopuonent gre Tos ede cores the ents selon of services EeuSrtmlyce oc preomen Te Olowing remain reasons wy Ae [nia sconce ith iste 2” Payal induce diferent cateores of employee benefits (bot {eons poscemplymen ter bngterasndrerement) tatu Stic fecenjor elements ian statement 32d Hoty pecan to empl Tacos —] Bou feted ie, bt ed OTS faced’ | “Saniesand maps expense sop {Peete opens so ate ‘Matalin ete “wens stealer and wage) Weecicionks Baers | me ime | zineaeer "Wer sold te serprted |eraRen | Se Rc IT Beers ne, ear | toavea | pene (can Exrtiie sae ive oar Te ny erent itn iy) erg rae eemeerne | cesta doce rHeaespeecqperecne ‘Sipmtnd 2a ay |» ena eae eet he Sh i orarded to the trary ta oar parage by due date 3 3 Taree al poialoccnning regecivel) | pay lob on tine and Uke Pelee tye ai _| 2bbeadoousten | ner z partment Obbaremen) SE arom Tisinavortercaeecies Genes cmos _oloned 1 Prepress rare tatty |e ge et ig te hk {prunes daty ime wich to |” ca von Faage Sedawandeltoyecstctag” | play "aon cea as Spb antl orthoc ember. ny ay sire anya Oe (eee aes Forms. document received, nine and processed Ta ec Tned bx [ Disab TR rads | oman a norma | HR Spat Fe ES wo amiga [eratnest | "immed to fro | empge am tne it fore "|e ied wp ts Ber ea 7 | Sena elie tsbreatbn Semaine a cas | Ey 6‘Seapter 4 — Transaction Cys ~ Tet of Contr [aise broecmrine ee] =) seomore cms aes “tetany and omer papal” rete | ors | Daily se Denes Ue paber o |Uae Tare Py Se morted ay | pret (ren [eeptyee ig ru day everday a buvpsiod Paya] Shows a Fei parr | Paral + Feary eater | inmotion gs a all * ener Aeducsons and ee F) coating foreach pat prod Takar GOR | Shows peel orsaon | PTT 7 Tavengy Ssmary | wich cnet or coating fare Jobo ester Taapiagee | Sow? Be come | FT dessus fertnge | yest sunmsy ef poste fecord | tering and edartons of enplores Day | Seacartae amine [Part (| + Gena omoaries | ocraed dustng te yy |b seountiog ‘Bediserntdoparimem | ogi) lerentry (or laveatrable, Ish) rey (lor ‘Simmtary of Functions of Departmen in Human Resource ancl Payroll Grae 2 tse department Primary abject To ence that ime reomds reste tl our wore dushg records Tone Se apne dal tne Note However eto inesncn | 55 Posie cntOe ferent exits in wi cepsr=e | fee toe prepared by employers ed ‘stoped rater 4 Toten Cytes Test of Contras Sate tn RGN ore comely [aly me FOE PSPS [Peed trong bomen and aces | eyes ves. anton af compte spans pyre of sup ceo thal be Rup evo partment 1 HRdepartment Friary chletiv: To ensare employees Inde i te paral are Ff series othe et tvs Fob conto iain apis and RANT TR | Comores apie se ‘tre ens Os depart aferwans paral rated information |code Teper cparanent (sly a | «ress adding stating hes tage es, Aaguses, eertine pays |" 1 HR recon all be ite oY Sport dedctons). reeneteparense sDacrmines tense af sttoment |» ormaton nt revatio pol (amps or tame) sea clon shal not be sae 2 {Srunaten ot employees ‘Ser deortmets Alzada sony payrll eure of terminated epoyee toi Tocksions al tase pte Inthe sequoia @, Paprolideparament ‘Prony ebjectie: To provide resonable assurance thatthe parol i Fase conta Teams an estes a Commas cls aOR BF Pe elated icrston fom He | ent ees his deparent ‘nduser deerme inate _liders ny uate on ompoyes |» Appropriate lve of sangeet ares sod daductoes (feratiy a meshes who I not SEES POLIS pel Bra a = accuracy ad reasonableness sings eonde stiles subi to veo |» To sre adequacy of retin ‘courng catalase pay | of ees papel apart fio of ervng anc maeloetaring | Should be egegsed fxm Nat meewaratie lt | Tressyr ad sree ‘on sprments a Se Toceaters cu een aes aeerenc apes a—Aaes —_— |___Fan Tater ressrecoret Common canoe aor By Ep acs ey |e eer i re abuitiscielstocaniyees|eSparte fuk secant shoul be Stem emi |” mad en Pr eee cettegreelecoeniny, | asboneaits «Gua spe Ba on employee na: Most compe ature |" repent om pao and user ft meh et res | ame yd Feast emyest pall swt | dna ether or 0% Beto Te baci he easy deprtnent | enplyeset comical sate ee are ease eet oe Souncin a ae Igy suscepti tet nd | ely ter aes misnppopianen, sdgot | ter mays Pye cools mut be | confeaton ees ‘homie he om Suiborine heh |» ngied pal ect shal be eo edepttes ean Accounting department s : {© poral ow appropriately Gael and recorded In cores ‘etunting period appropriate amounts menor Reeds mvvatarne or cpt to appropelte fobs or ftom acount snd fowerd daly summary 10. Eeneal secounang ‘Gone Reviews daly evar ae documents reeeved from ay, easy and Tnvertony deporments records the eon of pao rested expenses ad abies i the general fear PRODUCTION OR CONVERSION CYCLE Fada or coven cleaver ie pron of ais product ot Sihbode marl eran owrhend se cower Hshes fot ‘Theprnay sje ofthis oe the one vaaion of ventres and ‘otf pas nd. Such bet eevamposes the proper alloestion of tw each un made bythe production Separaer In ode attain thi te proucion deparenet aves bus fon the expendtire and ‘Sse ped poesia reves recto ‘The dt of he rch sa nth hye bn cused in Cost counting ors Tae fn of tht dscsin note Wl be putely on “controls over custody of resources involved, authorization of ac ite oot recoding of scion. or th subnet you may ne Chopeer it ee ae Feplemeae {oe din (0 ete mn Te predate department [for 7a | horse’ tb. mite noon | pects ery and rotons sed Socoments ever, no spel ran | IN, Prado roma bp the Steet ae Soc tn | Sean st |e yr aaa a Sens eeS me ae Shae eel oar Beaier et aed | Pee Setar cote aia Ee tka eee FINARCE AND ANVESTMENT CPCLE “Faun and iweament ove general voles ee major aegis o trnsactons Investments, Jonge des ad shareholden” eau. (ores emplaced proweses ox 3 cng fr SKS TEES, longer bites anaequy ansaios ‘tis ce normally vols ew bat sia amounts of resources Ts Mince common cals abnor testing 0 pther suet a are Hwee ste oad ta: oro GSE erence proved, cntra road dates pl responstibes i eof the aor cers tne ait. ‘With hig, lar wit he producsan a comerson he cf it {dual note wi te othe fret oul over cnt, amtoneson oand recoding ofthe diferent anestons eovee= ‘wane ts your rote tapes 32.26200 28 Summary ofcontalrelateddatoe and responstbiites Finance ele cuptt4—Tonscin ue Tes fotos Tent nae withthe ty mn ramarraeonom | _ ES ee | eupnsbaes | etn | permed yaar | sebelah | fall aye & ed ——'S See, Se aia | eg © to cent forge “nett oft | esas Ce earpcaSeeuy) SSScpenden "xtra | ol era, ‘sco hance oecrer te Scounug of uns laminar saat —eawacins [dor Fv rere ts jaa | mutes ofthe tard {Span So oer uesormecting “aeration [1 waonoh waco | fudlor va covered th eye | ines thom lrg enoun oft otha | dears mets eau. Uh thi ‘racine shal be approved by the ardof areca by shineriment commie ewrlng | Treats ne nerd 9 [dior tm fees ural by peso t | isthe recur Ya th en al pee the general acuing | Pepe of he maraiag | Tansactons se eared in he | AOR "poral vtonow, wos mpans| ais oan rl oul by personne | ews he si | ours tes Eroneel aeeene Veampstency of the peed gperseer bia le espana oot Be Invent ce rouh | reeneiton of a fbn lies te | sebdiay and tention of the iydeusanéyparment | gna liges onary and Tpatiaiaas ral ledgers ‘geste mane ting ns ns Taporant notes ‘hen toa Teast two igh alin fore Peden, Tres 1 incase of setlement of egy of debe secures previously issued {Ee cao. CFO or armen ofthe bu). "his conral soneties the erste br anes pecan (eg Ue core i ‘led alcool ont. hdd), The purpose of histo vad duplcste payments. The ‘2 Thealtornnmaly ent the con ofsestescoun ithe rnc into holding tects ose, ‘ppartingrecon ad cosets arethen kept as aude tral the 2. In case of debt instruments, the general accounting, shall sppopra}y manor ny acing interes rom the Hales Fasnirasined opeterm | races sole” | pura ut a GREAT gures seesareleptas anus | Sey to assened * Nei" ceftey | saan hang oni |e ane requets,FISHBONE DIAGRAM