Auditing The Revenue Cycle

Chapter 14

Defarika Apriani
Annisa Aprillia P
 STUDENT CONCEPTUAL FRAMEWORK

Honesty
Case study

Critical thinking Emphaty

Creative Dicipline
thinking

collaboration Confident

Communication Ethos
skill

Islam,
Iman, Ihsan
 Learning Objective

Risk assesment procedure in the revenue cycle

Control activities for credit sales transaction

Control activities for cash receipts transaction

Control activities for sales adjustment

transaction and other control

Substantive test of accounts receivable

Audit Working Papers

 Auditing the Revenue cycle

Auditing the Expenditure

Cycle
Auditing the
Auditing the production and
Transaction personnel services cycle
Cycle Auditing the Investing
and Financing Cycle

Auditing Investments and

Cash Balance
 Risk assesment procedure in the
revenue cycle

Develop Audit Objective

Understand the Entity and the Environment

Inherent Risk

Analytical Procedure

Consideration Control Internal Component

Develop Audit Objective
 Management Misstatement of Revenue
 Overstate revenue
 Overstate cash and gross receivable
 Understate allowance for doubtful
accounts

Other misstatement factors

 Opportunities for error
 Timing
 Missclasification
 Adjustment transaction

Inherent Risk
Analytical Procedure
Consideration Control Internal Component

1. Control Environment

2. Risk Assesment

3. Information and communication

4. Monitoring

5. Initial Assesment of control Risk

 Customer Order Sales
transaction file
Sales Order Sales
Journal
Shipping
Common Documents and Documents
Records
Sales
Invoice

Athorized price
list

Control activities for credit sales

transaction
  Athorizing sales
 Delivery of goods and
services
 Recording sales

Function and Control Activities

Illustrative System
for Credit Sales
 Common Documents and
Records :

 Remittance advice Function and Control

 Prelist Activities :
 Cash count sheets
 Daily cash summary  Receiving cash
 Validated deposit slip receipts
 Cash receipts transaction file  Depositing cash in
bank
 Recording the
receipts

Control activities for cash receipts transaction

 Sales return Control activities for sales adjustment
authorization transaction

Authorization for
accounts receivable Receiving report
writte-off Common
Documents and
Records
(Dokumen dan
Catatan Umum)

Journal entry Credit memo

 Pemberian potongan tunai (Granting
Cash discount)
Pemberian retur penjualan dan
pengurangan harga (Granting sales
return allowance)
Penentuan piutang tak tertagih
( Determining Uncollectible Accounts)

Sales Adjustment function and control

 Substantive test of accounts receivable

1. Keberadaan
2. Kelengkapan
3. Hak dan kewajiban
4. Penilaian dan alokasi
Menentukan resiko deteksi 5. Penyajian dan
untuk pengujian rincian pengungkapan

1. Prosedur awal
2. Analytical procedure
3. Pengujian rincian atas
transaksi
Merancang Substantive Test 4. Pengujian rincian
saldo
5. Pengujian rincian atas
estimasi akuntansi
6. Pengujian rincian
pengungkapan
Audit Working Papers

Kertas Kerja Neraca Saldo Piutang USaha

Formulir Permintaan Konfirmasi
1. Memeriksa penagihan
berikutnya
2. Memvouching faktur-faktur
terbuka yang berisi saldo
3. Aplikabilitas asersi
4. Mengevaluasi kelayakan
penyisihan piutang tak
tertagih