Exam 4: The Revenue Cycle

How is independent verification carried out in a manual revenue system?

Discuss two IT controls or edits that can be programmed into a system to minimize the risk from data input errors.

Physical controls are embedded in computer systems to control access to data.

When customer payments are received,the mail room clerk sends the checks to the cash receipts clerk and the remittance advices to the AR clerk.

State two specific functions or jobs that should be segregated in the sales processing system.

Customers should be billed for back-orders when

List two points in the sales processing system when authorization is required.

Which of following functions should be segregated?

What specific internal control procedure would prevent an accounts receivable clerk from issuing a fictitious credit memo to a customer (who is also a relative)for goods that were "supposedly" returned from previous sales?

The reconciliation that occurs in the shipping department is intended to ensure that

Copies of the sales order can be used for all of the following except

Another name for the stock release form is the picking ticket.

With regard to segregation of duties,rule one is that transaction authorization and transaction processing should be separated.What does this require in the revenue cycle?

Multilevel security employs programmed techniques that permit simultaneous access to a central system by many users with different access privileges but allows them to obtain information for which they lack authorization.

Which of the following is not a common method for achieving multilevel security?

Explain the steps needed to process a credit memo in the sales return system.

What role does each of the following departments play in the cash receipts subsystem: mail room,cash receipts,accounts receivable,and general ledger? Be complete.

The stock release document is prepared by the shipping department to provide evidence that the goods have been released to the customer.