Essay About Examine Customer Files And Review Customer Files

Audit Program
apollo Shoes Audit
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apollo Shoes Audit
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Audit Program
Apollo Shoes Audit
December 2, 2013
Sales and Collection Cycle
Design test of controls
-Examine Customer Files
-Examine Customer Orders
-Examine Sales Invoices, Bills of Lading, and Customer Orders for consistency
-Examine sales and credit procedures manual
-Examine customer orders for proof of customer approval
-Examine sales invoices for supporting bill of lading and customer orders
-Determine if monthly statements are sent to customers
-Examine credit procedures
-Examine tolerable misstatements in accounts receivables.
Substantive Test of Transactions
-Review customer files for completeness.
-Review customer orders for customer approval and credit approval.
-Review customer orders for timing of approval, shipments, and payment.
-Review customer orders for authorized pricing.
-Review sales invoices for sequential nature
-Review sales journals and master files for unusual transactions, duplicate transactions and/or large transactions.
-Review sales journal and master file entries for connecting supporting documentation and trace those supporting documents.
-Check that customer statements are sent out monthly and verify their amounts.
-Trace selected sales invoices from the journal
-Test for amount, date, and invoice number
-Trace totals to the general ledger.
Analytical Procedures
-Calculate the gross margin percentage and compare with prior accounting periods.
-Review sales over a period of 18 months to ensure consistency.
-Calculate the percentage completeness for open installment orders.
-Compute the receivables turnover ratio and compare with prior accounting periods.
-Calculate outstanding balances in relation to amounts already paid in comparison with prior years.
-Calculate the percent completeness for open installment orders.
-Compare bad debts with previous years
-Compare with previous years uncollectible accounts.
-Compare gross margin percentages with previous years.
Payroll and Personnel Cycle
Design test of controls
-Examine human resource files.
-Examine time records.
-Examine printouts of transactions rejected by the computer as having non-existent employee numbers.
-Examine payroll records for indication of approval.
-Examine file of batch totals for initials of data control clerk; compare totals to summary reports
-Examine procedures manual and observe when recording takes place.
Substantive