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جميع الحقوق محفوظة ـ اإلعتداء عىل حق املؤلف 61 بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونيةFINANCIAL STATEMENTS CYCLE:CLASSES OF TRANSACTIONS IN THE SALES AND COLLECTION CYCLE:chapter four Audit of the sales and collection cycle In this Chapter we will cover: 1-Financial statement Cycles meaning 2-Classes of transactions in sales and Collection Cycle 3-Auditing Sales and Collection Cycles First: Business functions in sales and collection cycles and the related documents: Second: Designing tests of controls and substantive tests of transactions for sales Third: Design test of Details for accounting receivable BalancesAudits are performed by dividing financial statements into smaller segments or components. The division makes the audit more manageable and aids in the assignments of tasks to different members of the audit team. A company way to divide an audit is to keep closely related types of transactions and account balances in the same segment. This is called the cycle approach. Ex: Sales, Sales R & A, cash receipts, AFDA, are four classes of transactions that causes accounts receivable to increase or decrease. Therefore, they are all parts of sales and collection cycle There are five classes of transactions in the sales and collection cycle: 1. Sales (cash and sales on account): Cash/AR XXSales XX2. Cash receipts Cash XXAR XX