Modern corporations often operate in a global context and are required to collect volumes of information to be used for future decisions or to be included as part of the organization's financial statements. The systems and processes used to capture, manipulate, and communicate this information must be dependable, accurate, and safe. Auditors are required to provide reasonable assurance that the information flow within these systems and processes is not fictitious, but represents true economic transactions, is as complete and accurate as possible, is accounted for at the correct periods, and is properly classified and recorded in the financial statements.
This course examines the audit function related to the revenue cycle, specifically the auditing of sales data flow through the systems and processes that capture and record it. First, it looks at the objectives of the revenue transaction cycle audit. Then it describes the revenue cycle and how to perform control tests and substantive tests to assess how well the stated objectives are being met. The course ends with presenting the auditor's findings and recommendations to the audit committee and management.Learning Objectives
- Sequence examples of the steps of the sales process
- Match transactions of the sales cycle to audit objectives
- Determine how internal controls related to the sales transaction cycle should be examined in a given scenario
- Recognize the appropriate testing strategy to use in a given scenario
- Describe how the audit of the revenue cycle is reported