Assignment

Identify at least 3 specialized industriesandidentify five possible inherent and five control risksassociated with the revenue and collection cycle, the appropriate control measure (preventive, detective or corrective) and the applicable test of control.See example below:

-Risk

Approval of customer credit without assessment of customer's ability to pay

-Control Measure

Review process of customer credit approval must be separate from the sales process - Segregate duties

-Test of Control

To test this control, the auditor may check approval documents prepared, reviewed and signed by employees not performing sales function