Revenue Cycle

 Revenue Routine Essay

AUDITING THE REVENUE CYCLE

Audit methods associated with the earnings cycle is an essential point in this report. Fundamentally, it is split up into three sections. First, that begins having a review of alternate technologies employed in both legacy and modern day system. Major is around the key functional task performed under every single technological environment. The second section discusses the revenue routine audit objectives, controls and test of controls that an auditor might perform to gather evidence had to limit the scope, timing and magnitude of hypostatic tests. The past section identifies revenue pattern substantive testing in relation to audit objectives.

INTRODUCTION TO REVENUE ROUTINE TECHNOLOGIES

Technology and software are crucial to successful financial leaders' strategy to balance rising expenditures and increase operating income. The most effective revenue pattern will use " best practice" processes allowed by extremely optimized technology. By using this mix of process and technology, organizations may understand efficiencies driven by improved workflows; decreased manual treatment; and more relevant, reliable, and timely decision-support information.

This section examines alternate information technology used in the revenue routine. The initially these is a sales purchase system that employs batch processing and uses continuous files pertaining to storing accounting records. This is certainly an example of an earlier legacy type system. This approach characterizes the era of information ownership by which files were designed solely for the use of an individual user. Second is a money receipt system that uses batch control and uses direct access documents. This settings is found in equally modern systems and late-era legacy devices. The immediate access file approach offers detailed advantages over sequential data file processing and permits limited data showing. The final system is a modern real-time sales buy entry and cash statements system that uses data source technology. Contemporary systems style embraces reengineering to radically reshape business processes and workflow. This method involves replacing traditional types of procedures with techniques that are progressive and sometimes very different from the ones that previously existed.

Information Technologies Used in the Revenue Circuit

I. Batch processing program using continuous files

Batch processing employing sequential data files involves two procedures: вќ– Manual methods

вќ– Automated procedures

Set processing system using sequential files - Manual types of procedures

In this standard system, buy taking, credit checking, warehousing and shipping are performed manually. The subsequent discussion traces the key features of the system.

1 ) Obtaining and recording the customers' buy

The sales procedure begins within the income department while using receipt of any customer buy indicating the sort and volume of merchandise staying requested. The principal objective of the step is usually to ensure that the relevant data regarding the deal are transcribed into a regular format that may be processed by the selling entity's system. The document prepared in this method is the revenue order.

The process start as the sales buy captures essential information including the name and address from the customer; the customer's accounts number; the name, amount and information of the item sold; the quantities and unit prices of each item sold; and also other financial details such as income taxes, discounts and freight expenses. In manual systems, multiple copies of sales order are created to serve different reasons. After organizing the product sales order, the sales clerk files one copy from it in the buyer open order file for long term reference. Since the process is carried out manually, completing the buy and getting the product to the customer may take days or even weeks.

2 . Approving Credit rating

The next step inside the revenue routine is transaction authorization, which involves...

 Essay about Cultural Examination

Essay about Cultural Examination

Global Business Ethnical Analysis: Germany July six, 2012 Freedom University Subjective The Indian population in america as increased over the years. You will discover signs they…...

Read..

ETH125 week 7 Range Organization Conventional paper

п»ї Range Organization Conventional paper Eth/210 10/13/13 In the next couple of paragraphs Let me talk about a brief history that women as well…...

Read..
 Gibraltar Article

Gibraltar Article

1) Introduction Gibraltar is a small peninsula on the southern coast of Spain and with its 35, 000 occupants and part of 2 . 6 square kilometers (6. several…...

Read..

Phase 2 CMS Task Thorn A Essay

п»їBMIS 325 Phase II Part A: Table Creation and Info Loading Part B: Reviews 1 . ) Human Resources: Select Regions. RegionName, Countries. CountryName, concat(Employees.…...

Read..

Most Common Behavioral Disorders of Childhood Dissertation

ADHD Research Pitch Antonio Herron EDU626: Analysis Design and Methodology (MRD1221B) Instructor: Rita Daniel Come july 1st 3, 2012 Abstract ADHD, or attention-deficit hyperactivity…...

Read..

Project Develpment Management Essay

Umbao, Leziel G. COBE-4BTTH-12: 00-1: 30PM DR . two 1 . What primary attributes distinguish the successful project managers from the more sub-par project managers? * Effective project…...

Read..