Audit Session 9

Chapter 12 - Aduit of Revenue Cycle

Risk Assessment is Criticla Why?

Factos to consider when assessing inherent risk & Fraud risk of Reveue Rec.

Inherent Risk - Industry Factors for revenue rec

Additional Inherent Risk factors for revenue

On the performance Obligation list, Provide each inherent risk point 1-3

Inherent Risk of Receivables

Inherent Risk: Estimates

List Common Frauds

Fraud Risk Assessment - Usual results and Auditors mindset.

Identify Relevant Assertions

Fraud Triangle

Incentive/Pressure, Opportunity , and Attitude/Rationalism.

Each assertion in the revenue process be able to identify:

List the Key Substantive tests at year end

Examine Aged Trial balance

List how to Examine AFDA

List the useful assertions of AR confirmations and their costs

Describe the several forms AR confirmations come in for sampling:

Test of Details for Rights & Obligations

Test of Deatils for Presentation & Disclosure