Revenue Cycle: Sales and Cash Collection

Revenue Cycle: Sales and Cash Collection

1. Business Activity

   • Sales Order Entry
   • Delivery
   • Billing and Accounts Receivable
   • Cash Collection

2. Controlling

   • Purpose
     • All transactions are properly authorized
     • All transactions are recorded is valid
     • All transactions are valid, and validated, it has been noted
     • All transactions are recorded accurately
     • Assets safeguarded from loss or theft
     • Business activities are carried out effectively and efficiently
   • Threat
     • Sales order entry
       • Customer orders that are incomplete or inaccurate
       • Credit sales to cutomers
       • The legitimacy of the order
       • Ending inventory, Cost of the storage of, and price reduction
     • Delivery
       • Delivery Errors
       • Inventory theft
     • Billing and accounts receivable
       • Failure to bill customers
       • Errors in billing
       • Errors in entering data
     • Csh collection
       • Theft of cash

3. Common Problems of Control

   • Loss of Data
   • Poor Performance