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Revenue and Receipt cycle, Compiled from Lesson 1-6, annexures, and online…

- - - - Test: Enquire about and observe the controls over cash. Do a surprise cash count (also attend on a surprise basis the daily balancing of cash): In the presence of the cashiers, who signs for receipt back of money; Agree the cash with the supporting documentation (receipts, cash invoices, cash register total); a) Follow the float through to the balance in the ledger. Observe that each cashier is responsible for their own funds. Observe that they lock away the money during their lunch breaks. Enquire about the policy regarding safekeeping of money during lunch breaks.
- - - - Test: Select a sample of invoices and inspect the following: Agree the qty with DN, agree the price with pricelist, signature of the independent reviewer. Follow the invoices through the sales journal and inspect the date and details.
  - - - Test: Select a sample from the sales journal and inspect if the transaction was recorded in the individual debtors account and if the total sales to debtors control account match the general ledger account.
  - - - Enquire about the policy from the management. Select a sample of DN and inspect for the numeric sequence. match DN to invoice and agree the particulars thereof. Also inspect for required signatures on delivery notes. enquire about process of DN when received from drivers.
  - - - Test Select a sample of sales and inspect whether they have been correctly identified
  - - - Test: Enquire about the procedures of granting credit, select a sample of credit customers and inspect that the limits have supporting documents. select a sample of internal sales order and inspect the signatures of the credit and or sales manager.
  - - - Test: Select a sample of invoices and perform a before and after period end. match it with the DN and follow through the accounting records inspect dates and evaluate if recorded in the correct period.
  - - - Test: Select a sample of the sales from sales journal and inspect for supporting documentations like internal sales order, a delivery note, and and invoice.
- - - - Test:Select a sample of receipts and inspect the numerical sequence. Observe whether daily cash up summary is prepared. inspect for independent person's signature of review. Select a few sample from receipts book and follow them through the cash receipt book and the entry into the journal.
  - - - Test: Select a sample of discounts granted and inspect for the signature of the independent person as proof of review.
  - - - Test: Enquire about the company policy with
        regards to the discounts. Select a sample of debtors’ payments and inspect for a signature of management. Select a sample of debtors payments and recalculate payments according to company policies.
  - - - Test: Select a sample of payments on the debtors account and inspect whether the date is the same as the date on the payment advice
  - - - Test: Select a sample in the debtors account and inspect if there is a sequentially numbered receipt, cash receipt summary and a deposit slip
  - - - Test Select a sample of receipts i.r.o. payments before/after month/period end and follow through to debtor's account inspect that it has been recorded in correct period.