Documente Academic
Documente Profesional
Documente Cultură
Cycle
Nama Anggota :
Fina Ratnasari
(123150059)
Sita Novitasari
(123150134)
Yogi Osvaldo (123150157)
2003 Prentice Hall Business Publishing,
Auditing
Assurance Services 9/e, Arens/Elder/Beasley
Yusak
Naaand(123150166)
13 - 1
Learning Objective 1
Identify the accounts and the
classes of transactions in the
sales and collection cycle.
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
13 - 2
Cash in Bank
Accounts Receivable
Beginning Cash receipts
balance
Sales returns
Sales on
and allowances
account
Charge-off of
Ending
uncollectible
balance
accounts
Cash Discounts
Taken
Sales Returns
and Allowances
Bad Debt
Expense
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
13 - 3
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
13 - 4
Learning Objective 2
Describe the business functions
and the related documents and
records in the sales and
collection cycle.
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
13 - 5
13 - 6
Granting Credit
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
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Shipping Goods
This is the first point in the cycle
where company assets are given up.
Shipping
document
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
13 - 8
Billing Customers
and Recording Sales
Sales invoice
Sales transaction file
Sales journal or listing
Accounts receivable master file
Accounts receivable trial balance
Monthly statement
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley
13 - 9
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2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 11
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 12
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 14
Sales Transaction
Accounts
Sales
Accounts receivable
Business
Functions
Business
Functions
Business
Functions
Charge-off of Uncollectible
Accounts Transaction
Accounts
Accounts receivable
Allowance for uncollectible accounts
Business
Functions
Business
Functions
Documents
General journal
and Records
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 19
Learning Objective 3
Understand how e-commerce
activities affect the
sales and collection cycle.
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 20
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 21
Learning Objective 4
Understand internal control
and design and perform tests
of controls and substantive
tests of transactions for sales.
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 24
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 25
Understanding Internal
Control Sales
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 26
Assess Planned
Control Risk Sales
Adequate separation
of duties
Proper authorization
Adequate documents
and records
Prenumbered
documents
Monthly statements
Internal verification
procedures
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 27
Internal Verification
Procedures
Evaluate cost-benefit
of testing controls.
Design tests of
controls for sales.
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 28
Transaction-Related Audit
Objectives for Sales
Existence:
Recorded sales are for shipments actually made.
Completeness:
Existing sales transactions are recorded.
Accuracy:
Recorded sales are for the amount shipped.
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 29
Shipping
document
Duplicate
sales invoice
Completeness Start
Sales
journal
General
ledger
Accounts
receivable
master file
Existence Start
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 31
Summary of Methodology
for Sales
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 32
Learning Objective 5
Apply the methodology for
controls over sales transactions
to controls over sales
returns and allowances.
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 33
Sales Returns
and Allowances
The transaction-related audit objectives
and clients methods of controlling
misstatements are essentially the same
for processing credit memos as those
described for sales.
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 34
Sales Returns
and Allowances
There are, however, two important differences.
Materiality
Emphasis on
objectives
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 35
Learning Objective 6
Understand internal control and
design and perform tests of
controls and substantive tests
of transactions for cash receipts.
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 36
Determine
Determine whether
whether cash
cash received
received was
was recorded
recorded
Prepare
Prepare proof
proof of
of cash
cash receipts
receipts
Test
Test to
to discover
discover lapping
lapping of
of accounts
accounts receivable
receivable
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 37
Learning Objective 7
Apply the methodology for controls
over the sales and collection cycle
to write-offs of uncollectible
accounts receivable.
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 38
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 39
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 40
Bad debt
expense
Cash
Allowance for
doubtful accounts
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 41
Accounts
Receivable
Audited by
TOC, STOT, and AP
Ending
balance
Cash receipts
transactions
Cash in
Bank
Audited by
TOC, STOT, and AP
Ending
balance
End of Chapter 13
2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley 13 - 43