Project in

Applied
Auditing

Michael C. Diputado
BSA - IV

DOCUMENTS
USED IN THE
REVENUE AND
COLLECTION
CYCLE

PURCHASE ORDER

request for
merchandise

by a customer, it may be received by

telephone, letter , a printed form
that has been sent to prospective
and

existing customer through sales people, or in other ways.

SALES ORDER

-A prenumbered document for recording the description, quantity and related

information for goods ordered by a customer. This is frequently used to show
credit approval and authorization for shipment.

SHIPPING DOCUMENT OR BILL OF LADING

A prenumbered document prepared to initiate shipment of the goods,

indicating the description of the merchandise, te quantity shipped, and other
relevant data.

SALES INVOICE

A prenumbered document indicating the description and quantity of goods

sold, the price including freight insurance, terms, and other relevant data.

CREDIT MEMO

A prenumbered document indicating a reduction in the amount due from a

customer because of returned goods or an allowance granted. It often takes
the same general form as a sales invoice, but it supports reductions in
accounts receivable rather than increase.

REMITTANCE ADVICE

A document that a customer attaches to a check in payment of an invoice.

The document may be a turnaround document, a part of a check, or a
statement identifying the invoices being paid. Remittance advices facilitate
recording cash receipts. If a customer does not return a remittance advice,
the employee opening the mail generally prepares one.

UNCOLLECTIBLE ACCOUNT AUTHORIZATION FORM

-

A prenumbered document used internally, indicating authority to write an account receivable off
as uncollectible.

MONTHLY STATEMENT

A document sent to each customer indicating the beginning balance of

accounts receivable, the amount and date of each sale. Cash payments
received, credit memos issued and ending balance due.

DOCUMENT
USED IN THE
EXPENDITURE
CYCLE AND
THEIR AUDIT
SIGNIFICANCE
PURCHASE REQUISITION

A prenumbered document that originates in the inventory stockroom or an

operating department and indicates to the purchasing department that goods
should be ordered. A requisition describes the items, specifies the quantity
needed, and indicates the requester.

PURCHASE ORDER

A prenumbered document recording the description, quantity, and related

information for goods and services the company intends to purchase. This
document is frequently used to indicate authorization to procure goods and
services.

RECEIVING REPORT

A prenumbered document prepared at the time tangible goods are received

that indicates the description of goods, the quantity received, the date
received, and other relevant data.

VENDORS INVOICE

A document that indicates the description and quantity of goods and

services received, price,,including freight, cash discount terms and date of
the billing.

CHECKS

A prenumbered written authorization to a bank to transfer funds to the payee. Checks are used as a means of
payment

VENDORS STATEMENT

A statement prepared monthly by the vendor indicating the beginning

balance, acquisitions, returns and allowances, payments to the vendor, and
ending balance.

DOCUMENTS
USED IN THE
PAYROLL AND
PERSONNEL
CYCLE

TIME CARD

prenumbered
record for each
employee
indicating the numbers of hours worked each day during a pay period. many
entities use a time clock that automatically records a starting and stopping
time.

DEDUCTION AUTHORIZATION

a form that employees sign to authorize their employer to withhold taxes and
various optional payments from their paychecks.

CERTIFICATE OF TAXES WITHHELD

a report prepared every year for each employee to report the gross amount
of earnings, income taxes withheld, and Social Security taxes withheld.
Copies are submitted to employees for filing with their tax returns to the
Bureau of Internal Revenue and to other government taxing authorities as
required.

LABOR TICKET

a prenumbered form on which time worked on job is recorded.

LABOR TICKET SUMMARY

a form that summarize the daily labor tickets by job or by process.

PAYROLL TAX RETURNS

Forms he entity files with governmental agencies reporting wages and taxes
withheld.

OTHER PERSONNEL RECORDS

- Employees applications

-Reports on reference checks

- Authorizations for employment

- Authorizations for pay or pay changes

- Performance-evaluation reports

- Records of sick and vacation days

BANK STATEMENTS

a printed record of the balance in a bank account and the amounts that have been paid
into it and withdrawn from it, issued periodically to the holder of the account.