Occurrence Sales Match sales Physical
recorded invoices with examinations of
should have despatch notes sales
taken place to show that transactions
and also sales figures match with sales
recognised reflect sales invoices and
that were despatch notes
actually made
accuracy all sales made check the Auditors select a sample
are recorded arithmetic of Examine a of sales invoices and
at correct the accuracy on sample of mathematically re-
amounts. the invoice processed perform the
before being invoices for extensions(quality*price),
processed stamp or initials discount calculations and
that verify that totals, agreeing prices to
they have authorised price lists,
indeed been verifying quantities
checked. despatched and checking
correct discounts.
completeness All sales Ensure that the Confirm sales
transactions stock is Ensure that transactions with
should be available and sales orders are customers. Analysing
captured and also ensure properly sales data for unusual
accounted for payment authorised and trends.
processing are approved
authorised.
Cut-off All sales Take the Test if the sales
should be sample of dates system only
properly invoices and allows the
recorded for check the dates invoices which
the period at on the sales relate to the
which they invoice in order current period
occurred. to gain an to be processed
assurance that and rejects the
the sales relate invoices of
to the current future and prior
period not period.
future nor prior
years in order
to reduce the
risk of double
processing
classification For every sale Maintain sales Confirm a cash Obtain records of
should be day books, recorded in the transactions and cash
allocated receivables and cashbook, to see receipts and match them
whether it’s a cashbooks for a that it to check if the balances
cash or credit clear corresponds correspond
representation with a cash
of a cash banked for cash
transaction and sales moreover
credit recalculate the
transaction amounts in the
receivables to
see that they
are not over or
understated.
receivables Control Control Test of controls Substantive procedures
objectives activities
existence Ensure that Regular Compare the Compare transactions of
recorded reconciliation balance in the sales made on credit with
receivables of customer receivable the receivable ledger
exist and statement with ledger control account and be
represent account correspond to careful of sales made on
valid amount receivable customer cash
owed by the ledger to statement to
entity. ensure that ensure that they
amount owed are.
are accurate
and valid
accuracy To ensure Periodically Review Inspect the aged
that invoices review customer receivables listing for old
are posted to customer correspondence and overdue amounts
the correct accounts for files for
customer any unpaid evidence for any
account amounts and complaints of
send incorrect
statements to invoices being
customers on a applied to a
monthly basis customer’s
account
Completeness The reconcile the Review the Re-perform the
receivables receivables receivables reconciliation to obtain
figures should ledger with reconciliation the direct evidence about
be complete control account done by the its accuracy.
by taking into at least client and also
account all monthly to check if they
the ensure that all were done
transactions balances are monthly.
that affect captured in
credit sales main accounts.
Rights and Ensure that accurate recalculation of
obligations receivables calculation of balances in the
are recorded bad debts and receivables to
at their net allowance for ensure that they
amount doubtful debts are recorded at
are well their net state
deducted from
receivables and
all returns are
paid off to
customers so
that assets
recorded
belongs to the
company