Audit Of the Sales cycle

SALES CYCLE

Based on cash sales or credit transaction, the revenue cycle consist of : sales returns, and the elimination of receivables. Accounting Information System that make up the revenue cycle is :

• Credit Sales System which consist of a variety of procedures, namely :

a. The prosedure of sales ordes                                       b. The credit approval procedure.                                     c. Procedure for delivery of the goods.                           d. Billing procedures.                                                         e. Procedure of recording accounts receivables           f. Record-keeping Procedures of credit sales revenue g. Record-keeping Procedures kos finished products       for sale

• Cash sales system consisting of a variety of procedures including :

1. Sales order procedure.                                                   2. Cash acceptance procedure.                                       3. Delivery procedure.                                                         4. Recording cash receipts procedures.                         5. Record-keeping procedures sales revrnue cash.       6. Record-keeping procedures kos finished product         for sale.

DESIGNING AUDIT PROGRAM TO TEST THE REVENUE CYCLE

• Credit sales
• Cash sales
• Returns sales
• Receivables loss backup
• Removal of accounts receivables

THE DRAFT AUDIT PROGRAM FOR CREDIT SALES TRANSACTIONS

Related Functions : editing the mail order received from the customer to add information.

Credit : credit status function in the through and given authorization granting credit.

Warehouse function : storing, preparing, and submitting the goods ordered to the delivery function.

The function of delivery : submit the goods based on mail order delivery.

Billing function : customer receives a sales invoice that is created and posted by the billing function.

The function of recording accounts receivable : note receivable arising due to a credit sale transaction.

 

DOCUMENT

the documents contained on the revenue cycle is : 

1. Mail order shipping : items are shipped must be in accordance with the quantity and specifications listed  on the document.

2. Credit : credit status effluent customer obtained authorization to obtain a credit sales.

3. a letter of acknowledgement : notification about an item that has been accepted and is in the procces of billing by the sales function.

4. Load letter : proof that the goods have been handed over to the public transport companies by the company.

 

ACCOUNTING ENTRY

The accounting records on revenue cycle :

1. Journal Sales : based on documents from the sales invoice then made notes about a sale.

2. The General Journal : contains a record of the products upon proof kos memorial.

3. Books of accounts receivable assistans : based on sales invoices, these records contain additional notes receivable on the debtor.

 

THE DRAFT AUDIT PROGRAM FOR A SALE FOR CASH 

Related functions :

• The sales function
• The function of warehouse
• The functions of the accounts receivable
• The function of cost accounting
• The general accounting functions
• The functions of the reception of the goods

DOCUMENTS

1. Credit memo : this document in the receivables account used to debit and credit sales returns account.

2. Report the receipt of goods : created to record the reduced accounts receivable and ordinary is accompanied by a credit memo dokument.

 

Accounting Records :

a. Public : journal to record the sales returns transaction, which puts your account receivables debit-side sales and account receivable the credit side effort.

Book helper source : based on accounts receivable crefit memo is used to record accounts receivable is reduced.

Supporting material : book to record the finished product on kos return source decuments the credit memo.

Great Book : comprising an account receivable business, material of a finished product, the result of a sale, and kos products sold.