tailieunhanh - Lecture Accounting information systems - Chapter 12: The revenue cycle: sales to cash collections

After studying this chapter, you should be able to: Describe the basic business activities and related information processing operations performed in the revenue cycle; discuss the key decisions that need to be made in the revenue cycle, and identify the information needed to make those decisions; identify major threats in the revenue cycle, and evaluate the adequacy of various control procedures for dealing with those threats. | Chapter 12 The Revenue Cycle: Sales to Cash Collections Copyright © 2012 Pearson Education 12-1 Learning Objectives Describe the basic business activities and related information processing operations performed in the revenue cycle. Discuss the key decisions that need to be made in the revenue cycle, and identify the information needed to make those decisions. Identify major threats in the revenue cycle, and evaluate the adequacy of various control procedures for dealing with those threats. Copyright © 2012 Pearson Education 12-2 The Revenue Cycle Copyright © 2012 Pearson Education 12-3 The Revenue Cycle Provides goods and services to customers Collects cash in payment for those sales Primary Objective: Provide the right product In the right place At the right time for the right price Copyright © 2012 Pearson Education 12-4 Revenue Cycle Activities Sales order entry Shipping Billing Cash collections Copyright © 2012 Pearson Education 12-5 General Revenue Cycle Threats Inaccurate or . | Chapter 12 The Revenue Cycle: Sales to Cash Collections Copyright © 2012 Pearson Education 12-1 Learning Objectives Describe the basic business activities and related information processing operations performed in the revenue cycle. Discuss the key decisions that need to be made in the revenue cycle, and identify the information needed to make those decisions. Identify major threats in the revenue cycle, and evaluate the adequacy of various control procedures for dealing with those threats. Copyright © 2012 Pearson Education 12-2 The Revenue Cycle Copyright © 2012 Pearson Education 12-3 The Revenue Cycle Provides goods and services to customers Collects cash in payment for those sales Primary Objective: Provide the right product In the right place At the right time for the right price Copyright © 2012 Pearson Education 12-4 Revenue Cycle Activities Sales order entry Shipping Billing Cash collections Copyright © 2012 Pearson Education 12-5 General Revenue Cycle Threats Inaccurate or invalid master data Unauthorized disclosure of sensitive information Loss or destruction of master data Poor performance Copyright © 2012 Pearson Education 12-6 General Revenue Cycle Controls Data processing integrity controls Restriction of access to master data Review of all changes to master data Access controls Encryption Backup and disaster recovery procedures Managerial reports Copyright © 2012 Pearson Education 12-7 Sales Order Entry Take order Check and approve credit Check inventory availability Copyright © 2012 Pearson Education 12-8 Sales Order Threats Incomplete/inaccurate orders Invalid orders Uncollectible accounts Stockouts or excess inventory Loss of customers Copyright 2012 © Pearson Education 12-9 Sales Order Entry Controls Data entry edit controls (see Chapter 10) Restriction of access to master data Digital signatures or written signatures Credit limits Specific authorization to approve sales to new customers or sales that exceed a customer’s credit limit Aging of .