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Auditing the Revenue Process - Coggle Diagram
Auditing the Revenue Process
Flow of Credit Sales Transactions
Authorization
Receive customer order for goods
Prepare internal sales order
Shipping
prepare shipping documents and ship goods
packing slip
Bill of lading
it is legal document issued by carrier to a shipper that serves as: a receipt for the goods being shipped, contract between the shipper and the carrier for the transportation, and document of title
Recording
prepare sales invoice to bill customer
record in sales journal
post to general ledger
record in A/R subsidiary ledger
Cash receipt process
Receiving and depositing cash
electronic funds transfer directly to bank
include remittance report from bank and deposit slip
recording
preexist of cash receipts
record in cash receipt journal
post to general ledger, bank reconciliation, bank statement
record in A/R susbsudary ledge
monthly statement sent to customers