Question: a What are typical substantive procedures in the revenue cycle

a. What are typical substantive procedures in the revenue cycle, and how are these procedures related to management assertions?
b. For the following procedures (numbered 1 through 6), indicate the assertion that is being tested.
1. Take a block of shipping orders and account for the invoicing of all items in the block and account for the prenumbering of the documents.
2. Review the general access controls to the computer application and the authorized ability to make changes to computer price files.
3. Recompute the invoice total and individual line items on a sample of sales invoices.
4. Review client documentation to determine policy for credit authorization.
5. Select a sample of shipping notices and trace to invoices.
6. Randomly sample entries into the sales journal and trace back to sales orders and shipping documents.

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  • CreatedSeptember 22, 2014
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