Create a questionnaire checklist that can be used to evaluate controls for each of the four basic activities in the revenue cycle (sales order entry, shipping, billing, and cash collections).
a. For each control issue, write a Yes/No question such that a “No” answer represents a control weakness. For example, one question might be “Are customer credit limits set and modified by a credit manager with no sales responsibility?”
b. For each Yes/No question, write a brief explanation of why a “No” answer represents a control weakness.