Term
| business functions for the sales and collection cycle |
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Definition
| the key activities that an organization must complete to execute and record business transactions for sales, cash receipts, sales returns and allowances, write-off of uncollectible accounts, and bad debt expense |
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Term
| classes of transactions in the sales and collection cycle |
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Definition
| sales, cash receipts, sales returns and allowances, write-off of uncollectible accounts, and bad debt expense |
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Term
| design format audit program |
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Definition
| the audit procedures resulting from the auditor's decisions about hte appropriate audit procedures for each audit objective; this is used to prepare a performance format audit program |
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Term
| lapping of accounts receivable |
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Definition
| the postponement of entries for the collection of receivables to conceal an existing cash shortage |
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Term
| performance format audit program |
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Definition
| audit procedures for a class of transactions organized in the format in which they will be performed |
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Term
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Definition
| an audit procedure to test whether all recorded cash receipts have been deposited in the bank account by reconciling the total cash receipts recorded in the cash receipts journal for a given period with the actual deposits made to the bank |
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Term
| sales and collection cycle |
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Definition
| involves the decisions and processes necessary for the transfer of the ownership of goods and services to customers after they are made available for sale, it begins with a request by a customer and ends with the conversion of a material or service into an account receivable, and ultimately into cash |
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