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FOR AUDIT 460… COMPLETE AND TURN IN TO CLASS ON APRIL 8, 2013 . You are to complete a memo about the REVENUE AND COLLECTION CYCLE. You are to address the following points in your memo. What is the...

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FOR AUDIT 460… COMPLETE AND TURN IN TO CLASS ON APRIL 8, 2013.
You are to complete a memo about the REVENUE AND COLLECTION CYCLE. You are to address the following points in your memo.
  • What is the revenue and collection cycle?
  • In addition to ACCOUNTS RECEIVABLE, what are two other significant accounts related to REVENUE and COLLECTION?
  • For ACCOUNTS RECEIVABLE, we often use CONFIRMATION LETTERS. What are the 2 types of confirmation letters (identify them and explain their differences)? Also, what are the relevant assertions we are testing with confirmation letters (should be at least 2)?
Value: 30 points
As always, the document should be written as if you were preparing it for an Audit-in-Charge or Audit partner. Word processed, stapled, and be sure to include your name and section number. I expect that it will require more than 1 page to sufficiently complete the assignment, but perhaps no more than 2.
Late assignments are not accepted.
ALSO, upload to TURNITIN on Blackboard. There will be a spot in the TURNITIN folder.
Prof. Meder
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FOR AUDIT 460… COMPLETE AND TURN IN TO CLASS ON APRIL 8, 2013. You are to complete a memo about the REVENUE AND COLLECTION CYCLE. You are to address the following points in your memo. What is the revenue and collection cycle? In addition to ACCOUNTS RECEIVABLE, what are two other significant accounts related to REVENUE and COLLECTION? For ACCOUNTS RECEIVABLE, we often use CONFIRMATION LETTERS. What are the 2 types of confirmation letters (identify them and explain their differences)? Also, what are the relevant assertions we are testing with confirmation letters (should be at least 2)? Value: 30 points As always, the document should be written as if you were preparing it for an Audit-in-Charge or Audit partner. Word processed, stapled, and be sure to include your name and section number. I expect that it will require more than 1 page to sufficiently complete the assignment, but perhaps no more than 2. Late assignments are not accepted. ALSO, upload to TURNITIN on Blackboard. There will be a spot in the TURNITIN folder. Prof. Meder

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Answered Same Day Dec 31, 2021

Solution

David answered on Dec 31 2021
108 Votes
REVENUE AND COLLECTION CYCLE
The revenue and collection cycle is related to the process of Sale of Goods to the
customers and collection of amount for the goods sold from the customers.
Following are the Steps of the Revenue and Collection Cycle:
a) Receipt of Customer Orders and its processing - The complete cycle starts
from receipt of Customer Order which results in writing of the sales order
ased on the Purchase order received from the customer.
) Granting of Credit to Customers – Before shipping the goods an authorised
person then checks the credit-worthiness of the customer to sell the goods on
credit. This ensures that the amount is recoverable from the customer.
c) Shipping of Goods to Customers – The goods are then shipped to the
customers and a shipping document like lo
y receipt or Bill of lading is
generated.
d) Billing the Customers – When the goods are shipped, the sale invoices are
also prepared and sent along with the goods to the customers.
e) Accounting for Accounts Receivable – When the bills are prepared the
amount of bill is also posted in accounts receivable against the name of the
customer.
f) Collection of Cash and its accounting – After the credit...
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