Page 61 - Auditinf Electronic System

3. Sales Returns and allowances (Sales Rand A)
Sales R&A XX
Cash/AR XX

4. Write off uncollectible accounts

5. Estimate Bad debt Expense
Bad debt Expense X
AR

AUDITING SALES AND COLLECTION CYCLE:

First: Business functions in sales and collection cycles and the related
documents:

For each transaction the auditor should determine and understand

Affected Accounts Related business function Related Documents
Accounts
Business Function Documents and
Accounts receivable Records
Sales Sales Transaction
1. Processing customer ▪ Customer order
Cash ▪ Sales order
Accounts receivable orders ▪ Shipping document
2. Granting credit ▪ Sales invoice
3. Shipping goods ▪ Sales transaction file
4. x ▪ Sales journal or listing
▪ Accounts receivable-

master file
▪ Accounts receivable-

trial balance
▪ Monthly statement

Cash receipts transactions

5. Billing and recording ▪ Remittance advice
Cash receipts
cash receipts ▪ transaction file
Cash receipts journal
▪

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‫جميع الحقوق محفوظة ـ الإعتداء على حق المؤلف بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية‬