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Assertions in the Revenue and Collection Cycle
Assertions in the Revenue and Collection Cycle
8
Accounting
Graduate
11/06/2012

Additional Accounting Flashcards

 


 

Cards

Term
Invoices supported by customer purchase orders. Bills of lading or other shipping documents exist for all invoices
Definition
Occurrence - Check this existence
Term
Recorded Sales in Sales Revenue Account are supported by Invoices
Definition
Occurrence - Vouch debits in AR to supporting sales invoices
Term
Invoices, shipping documents, and sales orders are pre-numbered and the numerical sequence is checked
Definition
Completeness - scan for sequence
Term
Overall comparison of sales are made periodically by a statistical or product line analysis
Definition
Completeness - Examine evidence of client review
Term
Credit sales are approved by credit department
Definition
Accuracy - examine invoice for accuracy
Term
Prices used to prepare invoices are from the authorized price schedule
Definition
Accuracy - Compare prices to approved price listing
Term
Date of shipping documents is compared to invoice date
Definition
Cutoff - Check agreement of date of shipment to sales invoice date. Check GOB terms.
Term
Sales to subsidiaries and affiliates are classified as intercompany sales

Credit sales are posted to customer's individual accounts
Definition
Presentation and disclosure - Trace posting of intercompany sales, sales returns, to sales.
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