RSM323H1 Chapter Notes - Chapter 11: Subledger, Bank Reconciliation, Audit Evidence
Document Summary
Linking audit planning to performing an independent fs. Business processes and accounting cycles: balance sheet approach to auditing using audit analysis of changes in bs accounts as a basis for obtaining preliminary assurance about the related is accounts and cf info. The essentials of auditing a business"s revenues, receivables, And receipts process: revenue creation is the main focus of any organization, and management will have strategies in place to generate revenues as well as business processes to implement the strategies. Bills of lading or other shipping documentation exist for all invoices. Recorded sales in sales journal are supported by invoices. Invoices, shipping documents, and sales orders are prenumbered and the numerical sequence is checked. Overall comparisons of sales are made periodically by a statistical or product-line analysis. Credit sales are approved by the credit department. Prices used in preparing invoices are from the authorized price schedule. Invoice quantities are compared with shipment and cx order quantities.
