Memo
MEMO:
From:
Learning Team B
Date:
October 28, 2013
Re:
Revenue Cycle
Reasoning for this memo is to explain with detail the qualitative features of importance that identifies the deviations seen in the auditing process at Apollo Shoes. During the audit process there were none compliances found in the records of Apollo Shoes Inc.’s revenue process, cycle of test ending 12/31/2007 and in the receivable aged trial balance sheet. In the following you will see a step listed that was taken during the process.
A total of approximately ten transactions have been selected for the twelve months as randomly selections for testing. In order to support each transaction the sample invoices were located for each, and posted to the ledger as well as customer accounts. All purchase orders were found aside from the December shipment of Mall-Warts that a purchase order was not found.
Three Quantity inaccuracy
Twelve Pricing inaccuracy
Two Arithmetic
Thirty one of no credit approval
Three missing Bill of Lading
Information on Statistical form:
46.6% of Accounts Receivable is current
9.9% of Accounts Receivable is 31-60 days past due
13.7% of Accounts Receivable is 61-90 days past due
29.8% of Accounts Receivable is over 90 days past due
11.5% of sales become over 30 days delinquent.
In conclusion there were fifty one abnormalities found and spoken of for the 2007 Revenue Cycle. Out of the fifty one transactions thirty one of them were found without credit approval. A total of 11.5 percent in the total sales had been in delinquent states for thirty days before it was actually collected. Then you also have the accounts receivable state on nine days past due with an amount over fourteen thousand dollars. In order for the receivables cycle to show improvement the sales order credit approval and the compliance process needs to show a more detailed process improvement.
Best Regards,
Learning Team B
From:
Learning Team B
Date:
October 28, 2013
Re:
Revenue Cycle
Reasoning for this memo is to explain with detail the qualitative features of importance that identifies the deviations seen in the auditing process at Apollo Shoes. During the audit process there were none compliances found in the records of Apollo Shoes Inc.’s revenue process, cycle of test ending 12/31/2007 and in the receivable aged trial balance sheet. In the following you will see a step listed that was taken during the process.
A total of approximately ten transactions have been selected for the twelve months as randomly selections for testing. In order to support each transaction the sample invoices were located for each, and posted to the ledger as well as customer accounts. All purchase orders were found aside from the December shipment of Mall-Warts that a purchase order was not found.
Three Quantity inaccuracy
Twelve Pricing inaccuracy
Two Arithmetic
Thirty one of no credit approval
Three missing Bill of Lading
Information on Statistical form:
46.6% of Accounts Receivable is current
9.9% of Accounts Receivable is 31-60 days past due
13.7% of Accounts Receivable is 61-90 days past due
29.8% of Accounts Receivable is over 90 days past due
11.5% of sales become over 30 days delinquent.
In conclusion there were fifty one abnormalities found and spoken of for the 2007 Revenue Cycle. Out of the fifty one transactions thirty one of them were found without credit approval. A total of 11.5 percent in the total sales had been in delinquent states for thirty days before it was actually collected. Then you also have the accounts receivable state on nine days past due with an amount over fourteen thousand dollars. In order for the receivables cycle to show improvement the sales order credit approval and the compliance process needs to show a more detailed process improvement.
Best Regards,
Learning Team B